Car Loan EMI Calculator

How to use this car loan EMI calculator

1. Enter the ex-showroom price of the car. It already includes GST, so there is no tax to add.
2. Enter your down payment, the part you pay yourself, and the trade-in (exchange) value if you are exchanging your old car.
3. Set the interest rate your lender has offered, as a yearly rate on a reducing balance.
4. Choose the loan tenure: 36, 48, 60, 72 or 84 months.
5. Open "More options" to add RTO registration & insurance if you are financing them, or the amount still owed on your old car if its loan is being closed and added to the new one.

The result shows your monthly EMI, the loan amount, the total interest, the total cost of the car, the total of EMIs and what the EMI would be if the same rate were quoted flat. It also compares your tenure with the next shorter one (or, at 36 months, the next longer) and gives a yearly EMI schedule.

How your car loan EMI is worked out

First the calculator finds the loan amount: the ex-showroom price, plus any RTO registration, insurance and old loan you are financing, less your down payment and exchange value. The EMI on that amount uses the standard reducing-balance formula:

Car loan EMI by tenure

A ₹8 lakh car loan at 9% a year:

Car loans commonly run up to 7 years. Going from 60 to 84 months cuts the EMI by ₹3,735.42 but adds ₹84,785 of interest, and on a long tenure you can end up owing more than the car is worth. And by car price, with 20% down at 9% over 60 months:

Ex-showroom price, on-road price and GST

The ex-showroom price already includes GST, so there is no tax to add on top of it. The on-road price adds RTO registration and insurance, and RTO charges vary by state. You can pay these yourself or add them to the loan. If you financed, say, ₹1 lakh of RTO and insurance in the example above, the loan would rise to ₹9 lakh, the EMI to ₹18,682.52 and the interest to ₹2,20,951: ₹24,550 more interest than if you paid them upfront.

Any processing fee on the loan attracts 18% GST. To see how a fee changes the cost of two offers, use the loan comparison calculator.

Exchanging your old car

The exchange value works like extra down payment. In the example, a ₹2 lakh exchange value on top of the ₹2 lakh down payment cuts the loan to ₹6 lakh and the EMI to ₹12,455.01. If your old car still has a loan, enter what you owe under "More options". Owing ₹2.5 lakh on a car worth ₹2 lakh leaves ₹50,000 of negative equity rolled into the new loan, which adds about ₹1,038 to every EMI.

Flat rates and prepayment

Some car loans are quoted at a flat rate, which charges interest on the full loan for the whole tenure. In the example, 9% flat would mean an EMI of ₹19,333.33 and ₹1,63,599 more interest than 9% on a reducing balance, so ask which kind of rate you are being offered. Balloon payments are rare on Indian car loans, so the calculator leaves them out.

Under RBI rules, floating-rate loans to individuals for non-business purposes cannot carry prepayment or foreclosure fees, while fixed-rate loans may. Before you sign, check that the new EMI fits within your FOIR, the share of take-home pay lenders allow for EMIs. For a loan on anything else, try the EMI calculator.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.