Car Loan Calculator
Calculate your car loan EMI, total interest, and payment schedule. Plan your car purchase with accurate monthly payment estimates.
Our free car loan calculator helps you understand the true cost of car ownership before buying. Enter the car price, down payment, interest rate, and loan tenure to see your exact monthly EMI, total interest, and total ownership cost.
Understanding Car Loans:
A car loan is a secured loan where the car itself serves as collateral. Banks lend money for vehicle purchases, and borrowers repay through monthly installments over 3-7 years. Unlike personal loans, car loan interest rates are lower because the bank has the car as security.
Why Calculate Car Loan Before Purchase:
Most car buyers focus on the monthly payment. But understanding total cost reveals the true affordability:
- Monthly EMI determines budget impact
- Total interest shows true loan cost
- Total cost helps compare car options
- Down payment significantly affects EMI
- Monthly EMI: ₹16,065
- Total Amount Paid: ₹9,63,900
- Total Interest: ₹1,63,900
- Total Cost of Ownership: ₹11,63,900 (including down payment)
Loan Details
Car Price
₹8,00,000
₹
Enter the total price of the car (₹1 Lakh to ₹50 Lakh)
Down Payment
₹1,60,000 (20%)
₹
Initial payment amount (0% to 50% of car price)
Loan Amount
₹6,40,000
₹6,40,000
Amount to be financed
Loan amount after down payment
Interest Rate (Annual)
8.5%
%
Annual interest rate (5% to 20%)
Loan Tenure
5 years (60 months)
Loan repayment period (1 to 8 years)
Processing Fee
1%
%
Bank processing fee (0% to 3% of loan amount)
Insurance & Other Costs
₹50,000
₹
Insurance, registration, and other costs
Monthly EMI
₹13,112
Total Payment
₹7,86,720
₹1,46,720
Total Interest
₹9,96,720
Total Cost
Payment Schedule (First 12 Months)
| Month | EMI | Principal | Interest | Balance |
|---|
Loan Options Comparison
| Tenure | EMI | Total Interest | Total Payment |
|---|
About Car Loan Calculator
The Car Loan Calculator helps you estimate your Equated Monthly Installment (EMI), total interest payable, and complete payment schedule for your car purchase. This tool is essential for planning your car finance and comparing different loan options.
How Car Loan EMI is Calculated
1
Loan Amount
Loan Amount = Car Price - Down Payment
2
Monthly Interest Rate
Monthly Rate = (Annual Interest Rate ÷ 12) ÷ 100
3
EMI Formula
EMI = [P × r × (1+r)^n] ÷ [(1+r)^n - 1]
Where: P = Loan Amount, r = Monthly Rate, n = Tenure in months
4
Total Cost
Total Payment = (EMI × n) + Down Payment + Other Costs
Factors Affecting Car Loan
Interest Rates
- New Car: 7.5% - 9.5%
- Used Car: 10% - 15%
- Electric Car: 6.5% - 8.5%
- Premium Cars: 8% - 12%
Loan Tenure
- New Car: Up to 7 years
- Used Car: Up to 5 years
- Optimal: 3-5 years
- Maximum: 8 years (some banks)
Down Payment
- Minimum: 15% - 20%
- Recommended: 25% - 30%
- Electric Cars: 10% - 15% (govt. schemes)
- Zero DP: Available with higher interest
Additional Costs
- Insurance: 2% - 4% of car value
- Registration: 8% - 15% of car value
- Processing Fee: 0.5% - 2%
- Road Tax: 2% - 15% (state-wise)
Note: This calculator provides estimates based on the inputs provided. Actual loan terms, interest rates, and processing fees may vary based on the lender, your credit score, and current market conditions. Always check with your bank for exact terms before making a purchase decision.