Car Loan EMI Calculator

Estimate the monthly EMI on your new or used car loan. See the total interest cost over the tenure and a clear year-by-year repayment schedule, so you can size your down payment and term sensibly.

A car loan of ₹8,00,000 at 9.5% for 7 years has a monthly EMI of about ₹13,075 — over the full tenure you repay ₹10.98 L, of which ₹2.98 L is interest.

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₹1L ₹50L
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7% 18%
Yr
1 8

How the Car Loan EMI Calculator works

A car loan is repaid in Equated Monthly Instalments, each combining interest on the outstanding balance with a slice of principal. Because a car is a depreciating asset — it loses value the moment you drive it out — the smart goal is to minimise both the tenure and the total interest. This calculator builds the full amortisation schedule so you can see your balance fall each year.

Down payment matters

Lenders finance most but not all of the on-road price, so a down payment is unavoidable. Putting down more than the minimum shrinks the loan, lowers every EMI, cuts total interest, and keeps you from owing more than the car is worth. Funding the road tax, insurance, and accessories from your own pocket rather than the loan also keeps the borrowing lean.

Tenure versus total interest

Stretching a car loan to its maximum tenure makes the EMI look small, but you pay considerably more interest on an asset that is steadily losing value. A shorter tenure raises the monthly outgo while slashing the interest cost. As a rule of thumb, try not to borrow for longer than you intend to own the car, and keep the interest slice in the donut above as small as your budget allows.

Frequently asked questions

How much down payment should I make on a car?
Lenders typically finance 80–90% of the on-road price, so you fund the rest as a down payment. A larger down payment lowers your loan amount, your EMI, and the total interest you pay. Many buyers aim for at least 20% down to keep the loan affordable and avoid being upside-down on a rapidly depreciating asset.
What is a typical car loan tenure in India?
Car loan tenures usually range from 1 to 7 years, with a few lenders offering up to 8. A shorter tenure means a higher EMI but far less total interest — sensible given that a car loses value every year. Avoid stretching the loan longer than you plan to keep the vehicle.
How does tenure affect the interest I pay?
A longer tenure reduces your monthly EMI but increases total interest, because you owe the principal for more months. On a car — a depreciating asset — the extra interest on a long loan can be substantial relative to the falling resale value. The donut above shows your interest slice; keep it small by choosing the shortest tenure you can comfortably afford.
New car or used car loan — does the rate differ?
Yes. New car loans usually carry lower interest rates (around 9–11%) than used car loans (around 12–15%), and used car loans often have shorter maximum tenures because the asset is older. Your CIBIL score and relationship with the bank also influence the rate offered.
Can I get any tax benefit on a car loan?
Salaried individuals get no tax benefit on a car loan for personal use. However, if you are self-employed or run a business and use the car for business purposes, you can claim the loan interest as a business expense and also claim depreciation on the vehicle under the Income Tax Act. Keep proper records to substantiate business use.
Is there a prepayment or foreclosure penalty on a car loan?
Unlike floating-rate home loans, car loans are usually fixed-rate, so lenders may levy a foreclosure charge of around 3–6% of the outstanding principal, often with a lock-in of 6–12 months before you can foreclose. Always check the loan agreement for these charges, since prepaying can still save substantial interest despite the fee.
What is the on-road price versus ex-showroom price?
Ex-showroom price is the manufacturer price plus GST and cess, before you can legally drive the car. On-road price adds road tax (state-specific), registration, insurance and any handling charges — typically 10–15% over ex-showroom. Lenders calculate the loan-to-value on either figure, so confirm whether your sanctioned amount is based on ex-showroom or on-road price.
Does a car loan help build my credit score?
Yes. A car loan is a secured EMI obligation, and paying every instalment on time is reported to credit bureaus, steadily improving your CIBIL score and your credit mix. Conversely, missed payments hurt your score and can lead the lender to repossess the financed vehicle. Set up an auto-debit to avoid accidental defaults.

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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.

Monthly EMI
₹13,075
Total interest
₹2.98 L