Car Loan EMI Calculator
Calculate your monthly car loan EMI (Equated Monthly Installment) with accurate interest and fee calculations
Calculate Your Car Loan EMI
Total on-road price of the car including taxes
Amount paid upfront (20.0% of car price)
Annual interest rate charged by the lender (typically 7-15%)
Duration of the loan (60 months total)
Processing fee: ₹1,200
Loan Amount
₹6,40,000
80.0% of car price
Down Payment %
20.0%
of total price
Monthly Rate
0.67%
per month
Processing Fee
₹1,200
one-time charge
Car Loan EMI Results
| Equated Monthly Installment (EMI) | ₹12,977 |
| Annual Percentage Rate (APR) | 4.37% |
| Loan Term | 60 months |
| Loan Principal | ₹6,40,000 |
| Total Interest Payable | ₹1,38,614 |
| Loan Fees | ₹1,200 |
| Total Payments | ₹7,79,814 |
Total Car Ownership Cost
Car Price
₹8,00,000
Down Payment
₹1,60,000
Total Loan Cost
₹7,79,814
Monthly Payment Breakdown (First 12 Months)
| Month | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹12,977 | ₹8,710 | ₹4,267 | ₹6,31,290 |
| 2 | ₹12,977 | ₹8,768 | ₹4,209 | ₹6,22,521 |
| 3 | ₹12,977 | ₹8,827 | ₹4,150 | ₹6,13,694 |
| 4 | ₹12,977 | ₹8,886 | ₹4,091 | ₹6,04,809 |
| 5 | ₹12,977 | ₹8,945 | ₹4,032 | ₹5,95,864 |
| 6 | ₹12,977 | ₹9,005 | ₹3,972 | ₹5,86,859 |
| 7 | ₹12,977 | ₹9,065 | ₹3,912 | ₹5,77,795 |
| 8 | ₹12,977 | ₹9,125 | ₹3,852 | ₹5,68,670 |
| 9 | ₹12,977 | ₹9,186 | ₹3,791 | ₹5,59,484 |
| 10 | ₹12,977 | ₹9,247 | ₹3,730 | ₹5,50,237 |
| 11 | ₹12,977 | ₹9,309 | ₹3,668 | ₹5,40,928 |
| 12 | ₹12,977 | ₹9,371 | ₹3,606 | ₹5,31,557 |
Green = Principal payment, Red = Interest payment
Car Loan Tips
Make 20% down payment to reduce EMI burden
Compare interest rates and APR from different lenders
Shorter tenure means higher EMI but less total interest
Check for pre-payment options without penalty
Maintain CIBIL score above 750 for best rates
Quick EMI Reference
₹5 Lakh Car (₹1L down)
~₹8,111/month (60 months @ 8%)
₹8 Lakh Car (₹1.6L down)
~₹12,977/month (60 months @ 8%)
₹10 Lakh Car (₹2L down)
~₹16,221/month (60 months @ 8%)
₹15 Lakh Car (₹3L down)
~₹24,332/month (60 months @ 8%)
Approximate EMIs for common car prices
Loan Eligibility Criteria
Age: 21-65 years
Minimum income: ₹25,000/month
CIBIL score: 750+ (recommended)
Down payment: 10-20%
Valid driving license
Income documents & bank statements
Understanding Car Loan EMI Calculation
What is a Car Loan?
A car loan or auto loan is a secured loan where you borrow money from a bank or financial institution to purchase a vehicle. The car itself serves as collateral, which means the lender can repossess it if you default on payments. This makes car loans typically have lower interest rates compared to unsecured personal loans.
EMI Calculation Formula
EMI = P × R × (1 + R)^N / ((1 + R)^N - 1)
P = Principal loan amount
R = Monthly interest rate (Annual rate ÷ 12)
N = Number of monthly installments
Key Components
- •Principal: Loan amount after down payment
- •Interest Rate: Annual percentage rate (7-15% typically)
- •Tenure: Loan duration (12-84 months usually)
- •Processing Fee: One-time charge (0.2-0.5% of loan)
How Car Loans Work
1. Application: Submit loan application with required documents
2. Verification: Lender checks income, CIBIL score, and documents
3. Approval: Loan sanctioned based on eligibility and car value
4. Disbursement: Loan amount paid directly to car dealer
5. Repayment: Monthly EMI payments for agreed tenure
6. Closure: Car ownership transferred after final payment
APR vs Interest Rate
Interest Rate: Basic rate charged on the principal amount
APR (Annual Percentage Rate): Total cost including interest rate and processing fees
Why APR Matters: Better comparison tool between different lenders
Tips to Reduce EMI
• Higher Down Payment: Reduces loan amount and EMI
• Longer Tenure: Lower EMI but higher total interest
• Good Credit Score: Better interest rates
• Compare Lenders: Shop for best APR rates
Pro Tip: Keep your EMI below 30% of your monthly income to maintain healthy financial balance and ensure comfortable repayment.