HomeLoans & EMI
Car loan EMI calculator
EMI for a car loan over 3 to 7 years.
Quick answer
Enter the loan amount after your down payment, the rate and the years. A ₹8,00,000 car loan at 9.5% for 5 years is about ₹16,801 a month.
Monthly EMI
₹16,801
- Total interest
- ₹2,08,089
- Total payment
- ₹10,08,089
- Interest share of what you pay
- 20.6%
- Principal
- Interest
Year-by-year table
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹2,01,618 | ₹1,31,234 | ₹70,383 | ₹6,68,766 |
| 2 | ₹2,01,618 | ₹1,44,259 | ₹57,359 | ₹5,24,506 |
| 3 | ₹2,01,618 | ₹1,58,576 | ₹43,041 | ₹3,65,930 |
| 4 | ₹2,01,618 | ₹1,74,315 | ₹27,303 | ₹1,91,615 |
| 5 | ₹2,01,618 | ₹1,91,615 | ₹10,003 | ₹0 |
How it works
Enter only the amount you borrow, which is the car price minus your down payment. A bigger down payment lowers both the EMI and the interest.
Car loans are short, so the interest share is smaller than on a home loan, but the rate is usually higher.
Compare tenures: 3 years costs more each month and far less interest than 7 years.
The formula
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = loan amount, r = interest rate per year ÷ 12 ÷ 100, n = number of monthly instalments
A worked example
A car loan of ₹8,00,000 at 9.5% for 5 years (60 months): EMI = ₹16,801. You repay ₹10,08,089 in total, so the loan costs ₹2,08,089 in interest.
Common questions
Should I take a 5-year or 7-year car loan?
The 7-year EMI is lower but the total interest is much higher, and the car loses value faster than you repay. Choose the shortest tenure you can afford.
Does the down payment reduce the EMI?
Yes. Subtract it from the car price before entering the loan amount.
Is the on-road price what I should borrow against?
Lenders often finance a share of the ex-showroom price. Enter the amount the lender actually offers.
Can I close a car loan early?
Usually yes, sometimes with a foreclosure charge. Check your loan agreement, then use the prepayment calculator to see the saving.