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EMI Calculator With Down Payment

When you pay part of the price upfront, only the balance is financed. This calculator works out that financed amount first, then the EMI on it, so you can see how a bigger down payment changes both.

A ₹8,00,000 purchase with ₹2,00,000 down finances ₹6,00,000, which at 10% over 5 years works out to an EMI of ₹12,748.

Paid upfront, so it is not financed.

%

Monthly EMI

₹12,748

for 5 years

Financed amount

₹6,00,000

Total interest

₹1,64,898

Total payment

₹7,64,898

Principal vs interest

Principal
₹6,00,000 (78.4%)
Total interest
₹1,64,898 (21.6%)

Compare tenures

EMI and total interest at different tenures
TenureEMITotal interestTotal payment
1 year₹52,750₹32,994₹6,32,994
2 years₹27,687₹64,487₹6,64,487
3 years₹19,360₹96,973₹6,96,973
4 years₹15,218₹1,30,438₹7,30,438
5 years₹12,748₹1,64,898₹7,64,898

Amortisation schedule

How each instalment splits between interest and principal.

Monthly EMI

₹12,748

5 years

What it is:
An EMI calculator for purchases where you pay part of the price upfront.
What it calculates:
The financed amount after the down payment, the EMI on it, and the total cost of the purchase.

Assumptions

  • Only the balance after the down payment is financed.
  • Processing fees are charged separately, not financed.
  • The rate is fixed for the tenure.

How it works

Financed amount = price minus down payment. The EMI is calculated on that financed amount only.

A larger down payment reduces both the EMI and the total interest, and often helps you qualify for a better rate.

Formula

Financed amount = price - down payment, then EMI = P x r x (1+r)^n / ((1+r)^n - 1)

P
= financed amount after the down payment
r
= monthly interest rate
n
= tenure in months

Example calculation

An ₹8,00,000 purchase with ₹2,00,000 down at 10% for 5 years

Price
₹8,00,000
Down payment
₹2,00,000
Financed amount
₹6,00,000
Interest rate
10% a year
Tenure
5 years
Monthly EMI
₹12,748
Total interest
₹1,64,898
Total cost
₹9,64,898

Frequently asked questions

How much down payment should I make?
Enough to keep the EMI comfortable without emptying your emergency fund. For vehicles, 20% or more is common and usually improves the rate offered.
Does the down payment reduce the interest rate?
Not directly, but a lower loan-to-value ratio makes the loan less risky, and lenders often price that at a slightly better rate.
Is the processing fee part of the down payment?
No. Processing and documentation charges are separate and usually collected upfront on top of the down payment.

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Further reading

Reviewed by Pradipta Ray, Editor · Last updated