How is car loan EMI calculated?

Car loan EMI is calculated on the loan amount (vehicle price minus your down payment) using the reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly interest rate and n is the number of months. Early EMIs are mostly interest and later ones mostly principal.

What is a good down payment for a car loan?

A larger down payment lowers the loan amount, so both your EMI and total interest fall. Many buyers put down 15–25% of the on-road price; putting down more saves interest, but keep enough cash for insurance and registration.

What tenure should I choose for a car loan?

Car loans usually run 1 to 7 years. A longer tenure lowers the monthly EMI but increases the total interest you pay, and a car is a depreciating asset — so a shorter tenure is generally wiser if the EMI is affordable.

Car Loan EMI Calculator (India)

Car Loan EMI Calculator

Work out your car loan EMI in seconds. Enter the vehicle's on-road price, your down payment, the interest rate and the tenure — you'll see the monthly EMI, the total interest, and a full year-by-year repayment schedule.

How it's calculated

Your loan amount is the on-road price minus your down payment. The EMI is then computed on a reducing balance: each month, interest is charged on the outstanding balance and the rest of the EMI reduces the principal. Because the balance falls over time, early EMIs are mostly interest and later ones mostly principal. Total interest is the sum of every EMI minus the loan amount.

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly rate and n the months. A car is a depreciating asset, so a bigger down payment and shorter tenure save real money.

Frequently asked questions

Does this include insurance and registration?

Enter the full on-road price (which already bundles insurance, registration and road tax) for the most realistic loan amount. Some lenders finance a share of on-road cost; adjust the down payment to match your offer.

Can I prepay a car loan?

Yes. Many lenders allow part-prepayment after a few EMIs, sometimes with a small charge. Prepaying early cuts the most interest — see the prepayment calculator for how the maths works.

Flat rate vs reducing rate?

This tool uses the reducing-balance method, which is standard for bank car loans. A "flat rate" quote looks lower but costs more, because interest is charged on the full amount for the whole tenure.

Car Loan EMI Calculator

Your car loan

How it's calculated

Frequently asked questions