Car Loan EMI Calculator
Calculate car loan EMI with down payment and on-road price
Market Rates (India 2024)
• New Car: 8-12%
• Used Car: 11-15%
• Best Banks: ~8.5%
✓ Good - Manageable
Monthly Income
₹1,00,000
Total EMIs
₹18,482
Current Car Value
₹10,00,000
Estimated Resale Value (Year 5)
₹6,19,650
62.0% of original value
| Year | Depreciation Rate | Depreciation Amount | Car Value |
|---|---|---|---|
| Year 0 | 0% | ₹0 | ₹10,00,000 |
| Year 1 | 15% | ₹1,50,000 | ₹10,00,000 |
| Year 2 | 10% | ₹85,000 | ₹8,50,000 |
| Year 3 | 10% | ₹76,500 | ₹7,65,000 |
| Year 4 | 10% | ₹68,850 | ₹6,88,500 |
| Year 5 | 8% | ₹49,572 | ₹6,19,650 |
Shorter Tenure Impact
Current EMI:
₹18,482
New EMI:
₹22,108
EMI Increase:
+₹3,627
Total Interest Saved:
₹47,697
Interest Reduction:
20.8%
Current Tenure:
5 years
New Tenure:
4 years
Time Saved:
1 year
Recommendation: If you can afford ₹3,627 more monthly, you'll save ₹47,697 in interest and finish 1 year earlier.
Longer Tenure Impact
Current EMI:
₹18,482
New EMI:
₹14,383
EMI Decrease:
-₹4,099
Additional Interest:
₹99,249
Interest Increase:
43.4%
Current Tenure:
5 years
New Tenure:
7 years
Extra Time:
2 years
Consider: Lower EMI of ₹14,383 provides breathing room but costs ₹99,249 more in interest over 2 extra years.
Smart Financial Tips
Optimal EMI Strategy
Keep EMI under 40% of monthly income for comfortable repayment
Prepayment Priority
Use bonuses and extra income to reduce principal amount
Investment Balance
Invest 10-20% of EMI amount in SIP for wealth building
Emergency Planning
Maintain 6 months EMI as emergency fund
Grand Totals (5 Years)
Total EMI Paid
₹11,08,898
Total Principal Paid
₹8,80,000
Total Interest Paid
₹2,28,898
Total Depreciation
₹3,80,350
Net Cost After Depreciation
₹14,89,248
Car Loan EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your car loan. It includes both the principal amount and the interest charged by the lender.
The EMI calculation considers the on-road price of the vehicle (including registration, insurance, and other charges), down payment, interest rate, and loan tenure to determine your monthly payment.
New Car Loan
Loans for purchasing brand new cars with lower interest rates (8-12%) and longer tenures up to 7 years.
Used Car Loan
Loans for pre-owned vehicles with slightly higher rates (11-15%) and shorter tenures, typically 3-5 years.
- ✓Pay higher down payment (20-30%) to reduce loan amount and EMI burden
- ✓Compare interest rates from multiple banks and choose the best offer
- ✓Consider total cost of ownership including maintenance, fuel, and insurance
- ✓Keep EMI below 30-40% of your monthly income for comfortable repayment
- ✓Make prepayments to reduce interest burden, especially after 6 months
- ✓Factor in car depreciation when planning loan tenure and resale value
The calculations provided by this car loan EMI calculator are estimates based on the information you provide. Actual EMI amounts may vary based on the lending institution's policies, processing fees, and other charges. Car depreciation values are approximate and can vary based on brand, model, condition, and market factors. This tool is for informational purposes only and should not be considered as financial advice. Please consult with financial advisors and banks for accurate loan terms and personalized guidance.
Loan Amount
Higher loan amount = Higher EMI
The principal amount directly affects your monthly payment. Borrow only what you need.
Interest Rate
Higher interest rate = Higher EMI
Even a 0.5% difference can significantly impact your total payment. Compare rates from multiple banks.
Loan Tenure
Longer tenure = Lower EMI but higher total interest
Shorter tenure = Higher EMI but lower total cost. Choose based on your repayment capacity.
Plan Your Budget
Ensure your EMI doesn't exceed 40-50% of monthly income
Check Hidden Costs
Look for processing fees, prepayment charges, other costs
Consider Prepayment
Make extra payments when possible to reduce total interest
Compare Offers
Compare interest rates and fees from multiple banks
Maintain Good Credit
A good credit score (750+) helps get better interest rates
Emergency Fund
Maintain 6 months EMI as emergency fund
Example 1: Smart Car Loan Strategy
Meet Rahul, a 28-year-old software engineer earning ₹80,000 monthly. He wants to buy a car worth ₹10 lakhs.
Strategy A: 7-Year Loan
Strategy B: 5-Year Loan
💡Key Insight: By choosing 5-year loan, Rahul pays ₹3,719 more monthly but saves ₹91,504 in interest. Since he earns ₹80,000/month, the higher EMI is manageable and he becomes debt-free 2 years earlier.
✓Advantages of Car Loan EMI
No Large Upfront Payment
Preserve your savings and emergency funds
Build Credit Score
Regular EMI payments improve your credit history
Prepayment Flexibility
Reduce loan burden whenever you have extra funds
Competitive Rates
Banks offer attractive rates for car loans (8-12%)
Immediate Ownership
Drive your car home while paying in installments
✕Disadvantages to Consider
Higher Total Cost
Interest payments increase total expense
Default Risk
Missed payments affect credit score
Processing Fees
Additional charges on loan approval
Long-term Commitment
Monthly payments continue for years
Depreciation Burden
Car value decreases while you pay EMI