Loan calculator
Car Loan EMI Calculator
See the monthly EMI on a car loan and the total interest it carries. Enter the amount you plan to borrow, the rate and the tenure, and the numbers update as you drag.
- Principal
- ₹8,00,000
- Total interest
- ₹2,08,089
- Total payment
- ₹10,08,089
For illustration only. Your actual EMI depends on the lender’s interest rate, processing and documentation fees, and any bundled insurance; this tool is not a loan offer.
How this car loan EMI calculator works
A car loan is repaid in equal monthly instalments that each cover part interest and part principal, using the standard reducing-balance formula:
EMI = P × r × (1 + r)n ÷ [ (1 + r)n − 1 ]
Here P is the loan amount (on-road price minus your down payment), r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months.
A worked example
Borrow ₹8,00,000 at 9.5% for 5 years. The EMI is about ₹16,802 a month. Over five years you repay roughly ₹10.08 lakh — around ₹2.08 lakh of interest on the ₹8 lakh borrowed. A larger down payment or a shorter tenure cuts that interest.
Using it well
A car is a depreciating asset, so avoid stretching the tenure just to shrink the EMI — you can end up owing more than the car is worth. Keep the loan short enough that the balance falls faster than the value does. MoneyGrad keeps every EMI in one view so a new loan never quietly overloads your month.
Frequently asked questions
- What is a car loan EMI?
- An EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a car loan. Each instalment covers part interest and part principal until the loan is cleared over the chosen tenure.
- How is car loan EMI calculated?
- EMI = P × r × (1 + r)ⁿ ÷ [ (1 + r)ⁿ − 1 ], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. The calculator recomputes this instantly as you change any slider.
- What tenure should I choose for a car loan?
- Car loans usually run 1–7 years. A shorter tenure means a higher EMI but far less total interest, and you avoid owing more than the car is worth. A longer tenure eases the monthly outgo but costs more overall — the calculator shows both.
- Should I put down a larger down payment?
- A bigger down payment lowers the loan amount, which lowers both your EMI and the total interest. Enter only the amount you actually plan to borrow (price minus down payment) to see the effect.
- Are these car loan figures exact?
- The maths is exact for the values you enter, but your real EMI depends on the lender’s rate, processing and documentation fees and any insurance bundled into the loan. Use this as a planning estimate, not a loan offer.