Car Loan EMI Calculator

Before you sign at the dealership, know exactly what the car will cost you. This car loan EMI calculatorstarts from the on-road price, subtracts your down payment, and shows the monthly EMI, the total interest and thetrue cost of the car — down payment, all EMIs and the processing fee together. Compare tenures side by side to see how much a longer loan really adds.

How to use it

Enter the on-road price (or estimate it with the on-road price estimator).
Set your down payment, the bank's interest rate and the tenure.
Check the EMI and the tenure comparison table.

The 20/4/10 rule

A popular guideline for buying a car sensibly: put down at least 20%, borrow for no more than4 years, and keep all car expenses under 10% of your monthly income. It's strict, but it keeps a depreciating asset from straining your budget.

Example

A hatchback costs ₹10 lakh on-road. With ₹2 lakh down, an ₹8 lakh loan at 9.5% for 5 years has an EMI of about ₹16,800 and total interest of about ₹2.08 lakh. Adding a 0.5% processing fee, the car really costs about ₹12.12 lakh. Stretching to 7 years drops the EMI to about ₹13,075 but adds roughly ₹90,000 more interest. For home or personal loans, use the generalEMI calculator.

Frequently asked questions

How is car loan EMI calculated?

Banks use EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount (on-road price minus down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months.

How much down payment should I make on a car?

A common rule of thumb is at least 20% of the on-road price, a loan of 4 years or less, and total vehicle costs (EMI, fuel, insurance) under about 10–15% of your monthly income. A bigger down payment means a smaller EMI and much less interest.

What are typical car loan interest rates?

New car loans from banks are usually around 8.5–11% a year, depending on your credit score, employer and the bank’s current offers; used car loans cost more. Check the latest rate with your bank — this calculator works with any rate you enter.

Should I choose a longer tenure for a lower EMI?

A longer tenure lowers the EMI but raises the total interest, and you may owe more than the car is worth for longer. Compare the total cost shown here for 3, 5 and 7 years before deciding.

Is the processing fee included?

Enter the processing fee percentage your bank charges (often up to about 1%). It is added to your total cost but not to the EMI.

EMI for other tenures