Car Loan Calculator
Estimate the monthly EMI, total interest, and total payment for a car loan, at an assumed interest rate and tenure. This is an illustration based on your own assumptions, not a loan offer or approval.
Your loan details
Adjust the amounts below to see how the illustrated EMI changes.
In rupees, the total amount borrowed for the vehicle purchase.
An assumption you choose for illustration — actual rates vary by lender, loan type and your credit profile, and are not guaranteed by this calculator.
Your estimate
Based on a loan amount of ₹10,00,000 at an assumed 9% annual interest rate, over a 7 years tenure, using standard reducing-balance EMI compounding. Does not include processing fees, insurance, prepayment charges or floating-rate resets.
On a car loan of ₹10,00,000, at an assumed 9% annual interest rate over a 7-year tenure — this illustration shows a monthly EMI of ₹16,089, with total interest of ₹3,51,483 over the loan (total payment ₹13,51,483). This does not include the vehicle's depreciation or insurance costs.
Try changing the amount, rate, or tenure to see how the EMI changes — confirm your actual sanctioned rate with a lender.
Learn about this calculator
Estimates the monthly EMI, total interest, and total payment for a car loan, at an assumed interest rate and tenure.
A car loan is typically secured against the vehicle itself, which usually means a lower interest rate than an unsecured personal loan, but tenures are generally shorter (often 3-7 years) since a car is a depreciating asset — its value falls over time, unlike a home. This calculator only illustrates the loan repayment; it does not track the vehicle's own value.
How it works
The EMI is calculated using the standard reducing-balance formula: each month's instalment covers the interest on the outstanding balance plus a portion of the principal, with the interest portion shrinking and the principal portion growing over the loan's life, while the EMI itself stays level throughout.
What each input means
- Car loan amount
- The total amount borrowed for the vehicle purchase (the principal).
- Interest rate (% p.a.)
- An assumption you choose for illustration — actual car loan rates vary by lender, whether the car is new or used, and your credit profile.
- Loan tenure (years)
- How many years the loan is repaid over — car loans commonly run 3-7 years.
What the results mean
- Monthly EMI
- The fixed monthly amount this calculation shows for the entered assumptions.
- Total interest
- The total interest paid over the full tenure, at the assumed rate.
- Total payment
- The total of all EMIs paid — principal plus total interest.
Assumptions
- The interest rate stays constant at the entered value for the entire tenure.
- Every EMI is paid on time, with no prepayments, part-payments, or missed instalments.
Limitations
- This calculator does not track the vehicle's own depreciation — a car loses value over time, and this tool only shows the loan repayment, not the car's resale value at any point.
- It does not include processing fees, mandatory insurance, registration costs, or prepayment/foreclosure charges.
- It does not check your loan eligibility or the specific rate any lender would actually offer — rates can differ for new versus used cars.
- This is not a loan sanction, offer, or approval of any kind — it is a mathematical illustration only.
Common mistakes
- Only budgeting for the EMI shown here and forgetting insurance, registration, and maintenance costs that come with owning the vehicle.
- Not accounting for the vehicle's depreciation — unlike a home, a car's value falls over the loan tenure, so the loan and the vehicle's value move in opposite directions.
Example
For example, a car loan of ₹10,00,000 over 7 years at an assumed 9% illustrates a monthly EMI in the neighbourhood of ₹16,089, with total interest of about ₹3.51 lakh over the loan.
FAQ
Does this account for the car's depreciation?
No. This calculator only illustrates the loan repayment schedule — it does not track how the vehicle's own value changes over time, which is a separate consideration from the loan itself.
Does this include insurance or registration costs?
No. This calculator only computes the standard reducing-balance EMI on the principal and interest rate entered — insurance, registration, processing fees, and other on-road costs are not included.
Are rates different for new versus used cars?
Often, yes — lenders commonly price used-car loans differently (typically higher) than new-car loans, along with other factors like your credit profile. Enter the rate you expect to compare scenarios.
Confirm your actual eligibility, sanctioned rate, and any additional on-road costs with a lender before relying on this illustration for real planning.
For illustration only. Not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Returns assumed are hypothetical and not guaranteed.