Car Loan EMI Calculator
The figure in the showroom window is not what you finance: on-road price adds RTO registration, first-year insurance and handling charges, and the loan is drawn against that larger number. This calculator starts from the on-road price, subtracts your down payment, and returns the EMI, total interest and one figure sales desks rarely show — the interest measured against what the car actually cost you.
Enter values
Results
- Monthly EMI
- ₹13,075.19
- Loan amount
- ₹8,00,000.00
- Total interest
- ₹2,98,315.57
- Interest as % of on-road price
- 29.83%
- Total payment
- ₹10,98,315.57
How is the Car Loan EMI calculated?
Four inputs: on-road price (ex-showroom plus RTO, insurance and handling), your down payment, the annual rate and the tenure in years — most new-car loans run between three and seven. The financed amount is the price minus the down payment, and the EMI, total interest and total payment follow from it. Interest is also expressed as a share of the on-road price, which keeps dealer finance honest.
Formula
Loan = on-road price − down payment. EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with P the loan, r the monthly rate (annual ÷ 12 ÷ 100) and n the instalments (years × 12). Price share = total interest ÷ on-road price × 100, so the result reads directly against the dealer's invoice.
Example
On-road price ₹10,00,000 with a ₹2,00,000 down payment finances ₹8,00,000. At 9.5% over 7 years — 84 instalments at a monthly rate of 0.007917 — the EMI is ₹13,075.19 and total interest is ₹2,98,315.57, so you repay ₹10,98,315.57 in all. Interest equals 29.83% of the car's on-road price, nearly a third of the vehicle's cost paid to the bank.
Things to remember
A car keeps losing value while the loan runs, so stretch the tenure carefully: the same ₹8,00,000 over five years costs ₹2,08,089.34 of interest instead of ₹2,98,315.57, an EMI of ₹16,801.49. Check which charges the lender finances, then compare the dealer's rate against your own bank's.
Frequently Asked Questions
How much down payment should I pay on a car?
Aim for 10–20% of the on-road price, plus any charges the dealer demands in cash. On a ₹10,00,000 car, ₹2,00,000 down leaves an ₹8,00,000 loan and an EMI of ₹13,075.19 at 9.5% over seven years. Every additional lakh down cuts about ₹1,634 from that instalment.
Is a car loan rate flat or reducing balance?
Bank auto loans are almost always reducing balance; some dealer and NBFC tie-ups advertise flat rates instead. A 12% flat quote over three years costs about the same as 21.2% on a reducing balance, so ask the question before comparing offers — the flat-vs-reducing calculator does the conversion.
Should I take a 7-year car loan?
Only when the EMI has to stay low. Seven years on ₹8,00,000 at 9.5% costs ₹2,98,315.57 of interest; five years costs ₹2,08,089.34 — ₹90,226.23 less — because the balance falls twice as fast. A car also depreciates quickly, so a long loan can outlive the vehicle's worth.
What is included in the on-road price?
Ex-showroom price plus RTO registration, first-year comprehensive insurance, handling and fast-tag charges. Lenders finance most of it, but registration and insurance are occasionally payable in cash — get that break-up in writing before you plan the down payment.
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