Car Loan Calculator

Work out monthly EMI and total cost for a car loan

Loan Details

20.0% of car price

Monthly EMI

₹0

Loan Amount:₹0
Down Payment:₹2,00,000
Total Interest:₹0
Total Car Cost:₹2,00,000

Loan Summary

Car Price₹10,00,000
Down Payment-₹2,00,000
Loan Amount₹0
Interest Rate9.5% p.a.
Loan Tenure60 months
Total Interest₹0
Total Car Cost₹2,00,000

Cost Breakdown

Down Payment100.0%
Principal Amount0.0%
Interest0.0%

0.0%

Interest on Loan

₹0

Annual Payment

About car loans

What is a car loan?

A secured loan to buy a new or used vehicle. The lender funds part of the on-road price; you pay the rest as a down payment. The car is hypothecated to the bank until the loan is closed.

How this calculator works

Loan amount = on-road price minus down payment. EMI uses the standard reducing-balance formula on that amount, rate, and tenure. Processing fees and insurance are not included.

EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]

Example: ₹10 lakh car, ₹2 lakh down, 9.5% for 5 years → loan ₹8 lakh, EMI about ₹16,801, interest about ₹2,08,089.

Down payment and tenure

  • • Lenders usually ask for 10–20% down on new cars; used cars often need more
  • • Maximum tenure is typically 7 years for new cars, shorter for used
  • • A longer tenure lowers EMI but raises total interest

Rates and charges

  • • New car rates are often 8.5–11%; used cars run higher
  • • Processing fee, documentation, and insurance are extra
  • • Prepayment rules vary — check whether your loan is fixed or floating

Total cost of ownership

"Total car cost" here means down payment plus all EMIs (principal and interest). It does not include fuel, maintenance, insurance renewals, or depreciation — budget for those separately.

Before you sign

Compare offers from the dealer's financier and your bank — rates and processing fees differ. Read the hypothecation, foreclosure, and insurance clauses. Keep EMI within what you can pay comfortably after other monthly expenses.

Disclaimer: Figures are estimates. Actual EMI, charges, and eligibility depend on the lender, car type, and your credit profile.

Questions & answers

What loan amount does the car EMI use?
On-road price minus your down payment. EMI is on that net loan amount, rate, and tenure. Road tax, registration, and processing fee handling varies by lender. Example: ₹10 lakh on-road, ₹2 lakh down, 9.5% for 5 years → EMI about ₹16,801.
What is included in total car cost here?
Down payment plus every EMI (principal + interest). Fuel, servicing, insurance renewal, and resale value are not included.
Fixed or floating rate on car loans?
Most car loans in India are fixed-rate for the tenure, so EMI stays flat unless you refinance. Check whether prepayment carries a penalty in your loan agreement.

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