Car Loan EMI Calculator

Work out what a car actually costs once the finance is added, and how a shorter tenure changes the monthly payment.

Monthly EMI

₹16,801.49

Total interest₹2,08,089.34
Total amount payable₹10,08,089.34

Works out in your browser. Nothing you type is sent anywhere.

In short: Car Loan EMI Calculator

Borrowing ₹8,00,000 at 9.5% a year for 60 months gives an EMI of ₹16,801.49. The interest adds ₹2,08,089.34 to the price, taking the total to ₹10,08,089.34. Car loans run shorter than home loans, so the rate matters more here than the tenure does.

What is Car Loan EMI?

A car loan EMI is the fixed monthly payment that repays a vehicle loan and its interest across the agreed term.

How is Car Loan EMI calculated?

EMI = \frac{P \times i \times {(1 + i)}^{n}}{{(1 + i)}^{n} - 1}

Multiply the amount financed by the monthly rate and by one plus the monthly rate raised to the number of instalments, then divide by that power minus one. The monthly rate is the yearly rate divided by twelve and then by a hundred.

EMIthe equal amount you pay every month
Pthe amount financed, after the down payment
ithe interest rate for one month, as a decimal
nthe number of monthly instalments

A worked example

Inputs and results for the worked example
Result
Car loan amount	₹8,00,000
Interest rate (% a year)	9.5%
Tenure (months)	60 months
Monthly EMI	₹16,801.49
Total interest	₹2,08,089.34
Total amount payable	₹10,08,089.34

Every figure in this table is produced by the same calculation the tool above runs.

How to use this car loan EMI calculator

Enter the amount being financed, which is the price less your down payment.
Enter the rate the dealer or bank quoted, as a yearly percentage.
Set the tenure. Five years is sixty months.
Compare the total interest at a few tenures before you choose one.

Questions people ask

Is the dealer's quoted rate the same as the bank's?

Often it is not. Dealer finance can carry a higher rate, a processing fee, or an insurance product bundled into the amount financed. Ask for the rate, the fee and the amount financed in writing, then put those numbers in here.

How much should the down payment be?

A larger down payment reduces the amount financed, so it cuts both the EMI and the interest. Many lenders fund most of the on-road price, but funding less of it costs you less overall. Try a couple of amounts here and compare the total interest line.

Does a used car loan work the same way?

The arithmetic is identical, but the rate is usually higher and the tenure shorter for a used vehicle. Lenders also cap the share of the value they will fund. Use the rate your own lender quotes rather than a new-car rate.

Can I close a car loan early?

Usually yes, though many lenders charge a foreclosure fee on a fixed-rate vehicle loan, and some bar it in the first few months. Ask what the fee is before you plan around it. The prepayment tool shows what closing early would save in interest.

Accuracy and sources

Estimate only. Not financial or tax advice.

Checked by the Daytoolz team on 16 October 2026. How we check our tools.

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