Car loan EMI calculator

Car loan EMI uses the reducing-balance formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount (on-road price minus your down payment), r is the monthly interest rate and n is the tenure in months. Car loans run shorter than home loans — usually 3 to 7 years — so the total interest is smaller, but the rates are higher.

Lenders usually finance 80–90% of the on-road price, so you pay the rest upfront. A larger down payment means a smaller loan, a lower EMI and less total interest. Since a car loses value over time, a healthy down payment also keeps you from owing more than the car is worth. Enter the financed amount above to see the EMI.

Shorter is better for cars. A 3–5 year tenure keeps total interest low and means you own the car free and clear before it ages much. Stretching to 7 years lowers the EMI but you pay more interest on a depreciating asset. Use the tenure slider to weigh the EMI against the total cost.

Yes. Car loan rates are typically higher than home loan rates because the loan is shorter and the asset depreciates. New-car loans get better rates than used-car loans. Always compare offers from banks and the dealer’s financing arm before signing.

Often, yes — processing fees, documentation charges, and sometimes loan-protection insurance, billed separately from the EMI. There may also be a foreclosure or prepayment fee. Ask for the all-in cost (APR) so you can compare loans on equal terms.

Usually yes, though some lenders charge a foreclosure fee on fixed-rate car loans. Prepaying still saves interest, especially in the early years. Check your loan agreement for any prepayment penalty before paying it off ahead of schedule.