Car Loan EMI Calculator

Car finance is quoted on the amount you borrow after the down payment, not on the showroom price. Enter the price, what you are paying upfront and the rate you have been offered to see the EMI and what the loan adds to the cost of the car.

A ₹12,00,000 purchase with ₹2,00,000 down finances ₹10,00,000, which at 9.5% over 5 years works out to an EMI of ₹21,002.

Car price (on-road)

₹

Down payment

₹

Paid upfront, so it is not financed.

Interest rate (per year)

Loan tenure

Monthly EMI

₹21,002

for 5 years

Financed amount

₹10,00,000

Total interest

₹2,60,109

Total payment

₹12,60,109

Principal vs interest

Principal: ₹10,00,000 (79.4%)
Total interest: ₹2,60,109 (20.6%)

Compare tenures

EMI and total interest at different tenures
Tenure	EMI	Total interest	Total payment
3 years	₹32,033	₹1,53,186	₹11,53,186
4 years	₹25,123	₹2,05,912	₹12,05,912
5 years	₹21,002	₹2,60,109	₹12,60,109
6 years	₹18,275	₹3,15,770	₹13,15,770
7 years	₹16,344	₹3,72,894	₹13,72,894

Amortisation schedule

How each instalment splits between interest and principal.

Monthly EMI

₹21,002

5 years

What it is:: A car loan EMI calculator that works from the on-road price.
What it calculates:: The loan after down payment and exchange value, the EMI, and the total cost of financing.

Assumptions

Lenders typically fund 80% to 90% of the price.
Insurance and registration may not be financed.
The rate is fixed for the tenure.

How it works

Loan amount = on-road price minus your down payment minus any exchange value for your old car.

Most lenders fund up to 80% to 90% of the on-road or ex-showroom price, so a down payment of at least 10% to 20% is usually required.

Dealer-arranged finance is convenient but not always the cheapest. Compare the rate against your own bank before signing.

Formula

Loan amount = on-road price - down payment - exchange value, then the standard EMI formula

on-road price: = ex-showroom price plus registration, insurance and charges
exchange value: = what the dealer allows for your old vehicle

Example calculation

A ₹12,00,000 car with ₹2,00,000 down at 9.5% for 5 years

Price: ₹12,00,000
Down payment: ₹2,00,000
Financed amount: ₹10,00,000
Interest rate: 9.5% a year
Tenure: 5 years
Monthly EMI: ₹21,002
Total interest: ₹2,60,109
Total cost: ₹14,60,109

Frequently asked questions

Should I use the ex-showroom or on-road price?

Use the on-road price if the loan is being sized against it, since that is what you actually pay. Many lenders fund a percentage of ex-showroom only, leaving registration and insurance for you to cover upfront.

What tenure is typical for a car loan?

Three to seven years. Seven-year loans have tempting EMIs, but the car depreciates faster than the loan amortises, which can leave you owing more than the car is worth.

Does a bigger down payment help?

Yes, on two counts: a smaller loan means less interest, and a lower loan-to-value ratio often earns a better rate.

Can I finance a used car the same way?

Yes, but used-car loans usually carry higher rates and shorter tenures. Enter the rate you have actually been quoted.