Car Loan Amount (Rs)
1 Lakh50 Lakhs
Interest Rate (% per annum)
715
Loan Tenure (Years)
18
Principal Total Interest
What is a Car Loan EMI Calculator?
A Car Loan is a secured loan where the vehicle itself acts as collateral, which typically makes interest rates lower than personal loans. This calculator shows your fixed monthly EMI, total interest payable, and the total amount you’ll repay over the loan tenure.
Because the car is pledged as security, lenders offer relatively lower Rates on car loans. Comparing EMIs across different tenures helps you find the balance between a manageable monthly payment and minimizing total interest paid over the loan’s life.
How the EMI is Calculated
EMI = P × r × (1 + r)n / [ (1 + r)n − 1 ]
P Loan (principal) amount
r Monthly interest rate (annual rate ÷ 12)
n Total number of monthly instalments (loan tenure in years × 12)
Note: Car loans are usually available for 1 to 8 years. Since cars depreciate over time, it’s generally advisable to avoid stretching the tenure too long — you don’t want to still be paying off a loan on a car that has lost most of its value.
Example: A Rs. 8,00,000 car loan at 9% per annum over 5 years results in an EMI of approximately Rs. 16,610 per month, with total interest of about Rs. 1,96,600 over the loan period.
Frequently Asked Questions
What is a Car Loan EMI calculator?
It estimates the fixed monthly installment for a car loan based on the loan amount, interest rate, and repayment tenure.
How is Car Loan EMI calculated?
EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the number of months.
Does the EMI include insurance or other charges?
No, the EMI covers only principal and interest. On-road costs like insurance, registration, and accessories are separate and not included.
How does loan tenure affect EMI?
A longer tenure lowers the monthly EMI but increases the total interest paid; a shorter tenure raises the EMI but reduces total interest.
Is the EMI calculator result exact?
It's a close estimate. The actual EMI may vary slightly depending on the lender's exact interest calculation method and any processing fees.