Car Loan EMI Calculator
Instant results as you type.
₹
%
months
Monthly EMI
₹16,801.49
Total interest₹2,08,089.34
Total amount payable₹10,08,089.34
Interest as % of loan26.01%
For education and planning only. Your bank or lender’s actual figures can differ — fees, rounding, day-count conventions and local rules vary. Always confirm the final numbers with your provider before deciding.
A car starts losing value the moment it leaves the showroom, while the loan keeps its full size for a while — which is why a long car loan can leave you owing more than the car is worth. This calculator shows the EMI, the total interest and the interest as a share of the amount financed, so you can weigh the monthly comfort of a seven-year loan against what it actually costs.
How to use it
- Enter the on-road price minus your down payment — that is the amount financed.
- Enter the rate offered by the bank or the dealer, and the tenure.
- Compare the total interest across tenures before choosing.
Examples
- 8 lakh at 9.5% for 5 years: 16,801 a month, and 2.08 lakh in interest — 26% of the amount financed.
- A larger down payment cuts both the EMI and the total interest proportionally.
Frequently asked questions
- How much down payment should I make on a car?
- Twenty per cent is the usual floor, and more is better. A larger down payment reduces the interest you pay, often improves the rate offered, and protects you from being underwater — owing more than the car would fetch if sold. Financing the whole on-road price, including insurance and registration, is how people end up in that position.
- Is a 7-year car loan a bad idea?
- Usually. The EMI looks comfortable, but the car depreciates far faster than the loan reduces, so for several years you owe more than it is worth. If the car is written off or you need to sell, you have to pay the difference in cash. Run five years and seven years here and compare the total interest — the gap is normally hard to justify.
- Should I take the dealer's finance or my bank's?
- Compare the effective rate, not the monthly figure. Dealer finance is convenient and occasionally subsidised by the manufacturer, but it can carry a higher rate or bundled add-ons. Get a quote from your own bank first so you have a number to negotiate against, and ask both for the total amount payable rather than the EMI.
- Does the EMI include insurance and registration?
- No. This calculates only the financed amount. Insurance, registration and accessories are usually paid up front, and if you roll them into the loan you pay interest on them for years. Keep them out of the loan where you can.
- Is it better to buy a car outright or on loan?
- If the cash is idle, buying outright avoids the interest entirely and is normally the better financial outcome, since a car is a depreciating asset rather than an investment. A loan makes sense when it preserves an emergency fund or when the money is genuinely earning more elsewhere than the loan costs — which, at typical car loan rates, is a high bar.