Use our free Car Loan EMI Calculator to estimate your monthly repayment for new or used car loans. Enter loan amount, interest rate, and tenure to see monthly EMI, total interest, and a full amortization schedule instantly.
| Month | Opening Balance | Interest | Principal | Closing Balance |
|---|---|---|---|---|
Showing first 12 months. Total tenure: months.
A Car Loan EMI Calculator is a free online financial tool that helps prospective car buyers estimate the exact monthly installment payable on a car loan before they apply. Whether you are buying a new hatchback, a mid-size sedan, an SUV, or a used car, this calculator helps you determine the most affordable loan structure — covering the optimal combination of down payment, loan amount, interest rate, and tenure — to match your monthly budget.
Car loans in India are secured loans where the vehicle itself serves as collateral. Because of this security, car loan interest rates are significantly lower than personal loans, typically ranging from 7.5% to 16% p.a. for new cars and slightly higher (11%–18%) for used cars. The loan tenure usually ranges from 1 to 7 years (12–84 months), with 5 years being the most popular choice for balancing EMI affordability and total interest cost.
This calculator is suitable for evaluating car loans from all lenders — public sector banks, private sector banks, NBFCs, and captive finance arms of auto manufacturers (such as Maruti Finance, Hyundai Motor Finance, Tata Motors Finance, etc.).
EMI = [P × R × (1+R)^N] / [(1+R)^N − 1]
Where P = Loan principal, R = Monthly interest rate (annual ÷ 12 ÷ 100), N = Tenure in months. For example: A car loan of INR 10,00,000 at 9% p.a. for 60 months gives EMI ≈ INR 20,758. Total interest ≈ INR 2,45,471 over 5 years.
Interest rates: 7.5%–10% p.a. LTV: up to 90% of on-road price. Tenure: up to 84 months. Documentation is simpler. Manufacturers often offer subvented (subsidised) rates through their finance arms during festive seasons.
Interest rates: 11%–18% p.a. LTV: 70%–80% of current market value. Tenure: up to 60 months. Car age restrictions apply (typically max 10 years old at loan maturity). More documentation required to establish vehicle ownership and condition.
Many banks offer preferential rates for EVs (0.25%–1% lower than standard car loan rates) as part of green finance initiatives. FAME-II subsidies may also reduce the effective purchase price, further lowering the loan amount required.
For motorcycles and scooters, interest rates are 10%–24% p.a. with tenures from 12–48 months. LTV is typically 85%–95% of the on-road price. This calculator works for two-wheeler loans as well — simply enter the relevant figures.
Banks disburse car loans based on either the ex-showroom price or the on-road price, depending on their policy. Understanding the difference is important for calculating your effective down payment:
Most banks finance 80%–90% of the ex-showroom price or on-road price — whichever is lower per their policy. Calculate the actual loan amount you will receive before arriving at the dealership to avoid surprises.
A car depreciates rapidly in value, losing approximately 15%–20% of value in the first year alone and 50%–60% by the 5th year. Financially, it is advisable to repay a car loan as quickly as comfortably possible to avoid being in a negative equity situation (where you owe more than the car is worth), which affects trade-in and resale planning.
A 3 to 5-year tenure is generally optimal for car loans. It keeps EMIs affordable while ensuring the outstanding loan balance does not significantly exceed the car's current market value during the mid-tenure period.