Car Loan Calculator - Calculate Car Loan EMI & Interest Car Loan Calculator
Use our free car loan calculator to estimate your monthly EMI, total interest payable and year-wise amortisation schedule. Plan your vehicle purchase with down payment, processing fees and loan comparison.
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Amortisation Schedule
| Year | Opening Balance | EMI Paid | Principal Paid | Interest Paid | Prepayment | Closing Balance |
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Car Loan Calculator - Guide
What is a Car Loan?
A car loan (auto loan / vehicle loan) is a secured loan provided by banks and NBFCs for purchasing a new or used vehicle. The vehicle itself serves as collateral until the loan is fully repaid. Car loans typically offer lower interest rates than personal loans because they are secured by the vehicle.
Car loans are repaid through Equated Monthly Instalments (EMIs) over a tenure of 1 to 7 years. The EMI includes both principal and interest components. Use our EMI Calculator for a quick EMI-only calculation.
Benefits of Using a Car Loan Calculator
- EMI Planning: Know your exact monthly repayment before visiting the showroom. Check affordability using our Salary Calculator.
- Down Payment Analysis: See how different down payment amounts affect your EMI and total interest.
- Compare Offers: Quickly compare EMIs across dealer financing vs bank loans at different interest rates.
- Budget Planning: Determine the maximum vehicle price you can afford based on your monthly budget.
- Total Cost Visibility: See the complete cost of ownership including interest and processing fees.
- Prepayment Savings: Understand how extra payments can reduce your total interest burden.
Car Loan EMI Formula
Loan Amount = Vehicle Price − Down Payment
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
Total Payment = EMI × n
Total Interest = Total Payment − Loan Amount
Where:
- P = Loan principal (Vehicle Price − Down Payment)
- r = Monthly interest rate (Annual Rate / 12 / 100)
- n = Total number of monthly payments (Years × 12)
How Our Car Loan Calculator Works
- Vehicle Price: Enter the on-road price of the car you wish to purchase (including taxes, registration, insurance).
- Down Payment: Enter the upfront amount you will pay (usually 10–25% of vehicle price).
- Interest Rate: Enter the annual interest rate offered by your lender (7–12% for new cars, 12–18% for used).
- Loan Tenure: Enter the repayment period in years (1 to 7 years).
- Processing Fee: Enter the one-time processing fee percentage charged by the lender (usually 0.5–2%).
- Yearly Prepayment: Optionally enter an extra amount you plan to pay each year to reduce principal faster.
Tips for Getting the Best Car Loan
- Higher Down Payment: Paying 20–25% upfront reduces your loan amount and saves significant interest.
- Shorter Tenure: A 3-year loan costs much less in total interest than a 7-year loan, even if the EMI is higher.
- Compare Lenders: Banks, NBFCs and dealer financing can offer different rates. Even 0.5% less can save thousands. Use our Compound Interest Calculator to see the impact.
- Check Pre-approved Offers: Your existing bank may offer pre-approved car loans at preferential rates.
- Avoid Long Tenures: Cars depreciate fast — a long-tenure loan can leave you owing more than the car’s value.
- Read the Fine Print: Check for prepayment penalties and hidden charges before signing.