Calculator
Car loan EMI calculator
The car depreciates from day one — keep the loan shorter than the love.
Typical car loans: 9–12% over 3–7 years. No tax benefit; a bigger down payment beats a longer tenure almost every time.
- Monthly EMI₹16,998
- Total interest₹2.20 L
- Total payable₹10.20 L
Hover a bar for that year's principal vs interest split.
Reducing-balance EMI. A 0.5% rate negotiation or yearly prepayment shortens the loan more than it looks — run the numbers before signing.
What this calculator answers
An ₹8,00,000 car loan at 10% over 5 years costs ₹16,998 a month, ₹2,19,858 in interest and ₹10,19,858 in total. Move the amount, rate and tenure to see how each changes the monthly outgo.
How it is calculated
Reducing-balance EMI: EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1), where i is one-twelfth of the annual rate and n is the number of months. Total interest is EMI × n − principal.
Defaults are ₹8 lakh at 10% over 5 years, in the 9–12% and 3–7-year range typical of car loans. Processing fees, insurance and accessories are not included.
Common questions
Does a longer tenure reduce what I pay?
It lowers the monthly EMI but raises total interest, so stretching the same loan from 5 to 7 years costs more in rupees overall.
Is there a tax benefit on car loan interest?
Not for a personal car. Interest on a loan for a vehicle used in business may be deductible, which is a different case from the personal-loan maths here.
Where does the down payment go?
Enter only the amount you are financing as the principal. The down payment reduces the loan, and therefore the interest, automatically.
Source & freshness
- Source
- Deterministic formula in lib/calculators.ts
- Timeliness
- Static-verified
- Method
- calculated
- Note
- Illustrative projection from your inputs — not a market quote.