Free calculator
Car loan EMI calculator
Work out the monthly EMI on a car loan and the total interest you pay over the tenure — before the dealer adds the loan to your invoice.
What is a car loan EMI calculator?
A car loan EMI calculator computes the fixed monthly payment a buyer makes on an auto loan, given the loan amount, annual interest rate, and tenure in years. Car loans in India typically run 3 – 7 years on a reducing-balance basis. Unlike home loans, car loans are sometimes fixed-rate — confirm whether the rate the dealer quotes is fixed or floating before signing.
Formula used
EMI = P × i × (1+i)^n / ((1+i)^n − 1)
P = principal, i = monthly interest rate (annual % ÷ 12 ÷ 100), n = tenure in months. Total interest = EMI × n − P.
How to use this EMI calculator
- 1Enter the loan amount (principal) you intend to borrow in rupees.
- 2Enter the annual interest rate the lender has quoted as a percentage.
- 3Enter the tenure in years — longer tenures reduce EMI but multiply total interest.
- 4Read the monthly EMI, total payment, and total interest figures below the inputs.
Typical car loan rates in India
New car loan rates in India typically range 8.5 – 11.5 % per annum for salaried borrowers with prime credit. Used car loans run higher: 11 – 16 %. Most banks offer 5–7 year tenures; longer tenure brings the EMI down but stretches the depreciation curve — you can end up paying interest on a car worth less than the loan balance.
Inputs
Results
Monthly EMI
₹12,601
Total payment over tenure
₹7,56,060
Total interest
₹1,56,060
EMI shown uses the standard reducing-balance formula. Actual bank EMI may differ slightly because of processing fees, prepayment charges, GST on insurance, or rounding rules in the lender’s amortisation schedule.
What this loan actually costs
You borrow ₹6 L — you repay ₹7.56 L (1.26× the principal).
₹1.56 L of that is pure interest — 21% of every rupee you pay back goes to the lender, not to your house / car / dream. Prepayment cuts that line item faster than anything else.
The journey, month by month
Month 1: pay ₹12.6k — most of it is interest, a sliver chips at principal. Year 3: the split flips, principal finally outpaces interest. Month 60: the last EMI clears the loan. Same cheque each month — wildly different work behind the scenes.
Real EMI may differ slightly from the calculator because of processing fees, prepayment charges, insurance GST, or lender-side rounding.
Already paying an EMI?
Add the loan to Extrack and the EMI becomes a recurring entry — the home dashboard then shows you whether next month survives, every month, automatically.
Try Extrack free →How is EMI calculated?
EMI = P × i × (1+i)^n / ((1+i)^n − 1), where P is the principal, i is the monthly interest rate (annual % ÷ 12 ÷ 100) and n is the number of months. The same EMI is paid each month; what changes month-over-month is the split between interest and principal.
Car loan EMI — frequently asked questions
- How much EMI for a ₹6 lakh car loan at 9.5 % for 5 years?
- About ₹12,594 per month. Total payment over 5 years is roughly ₹7.56 lakh, of which ₹1.56 lakh is interest. Doubling the tenure to 7 years drops the EMI to about ₹9,841 but raises total interest to roughly ₹2.27 lakh.
- Should I pick a longer car loan tenure to lower EMI?
- Usually no. Cars depreciate fastest in the first three years. A 7-year loan often leaves you owing more than the resale value at year 4, which traps you if the car is totalled or you want to switch. 4 – 5 years is the practical sweet spot.
- Can I prepay a car loan?
- Most banks allow it, but fixed-rate car loans often charge a prepayment penalty of 2 – 5 % of the outstanding principal. Check the sanction letter before deciding — sometimes it’s cheaper to keep the EMI than to pay off early.
- Are car loan EMIs tax-deductible?
- No, for a personal-use car. If the car is bought for business use and you’re self-employed, the interest portion of the EMI may be claimed as a business expense — speak to a CA before assuming so.