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Slide the bars to adjust the numbers

Select Loan Amount


Select number of months


Select interest rate


EMI Payable

Total Interest

Payable Amount

How to use this EMI Calculator?

  • Use the slider for Selecting Loan Amount
  • Select the Loan tenure in Months using slider
  • Move the slider and select the Interest Rate
  • Recalculate your EMI anytime by changing the input sliders
  • EMI will be calculated instantaneously when you move the sliders.

Payment Breakup

Monthly Repayment schedule

Try our other EMI Calculators


What is Car Loan EMI?

Car Loan is one of the various types of secured loans taken from a financial institution for buying a car. Owning a car has almost become a necessity in today’s fast-paced life.

You can either opt for a new car or a used one. Again, your budget does play an important role. How much downpayment you think is feasible and what is the amount you require as loan. You can repay the loan in a pre-agreed tenure in affordable EMIs; failing to do so might cause your credit score to fall and also result in the lender seizing your asset to make up for their loss.

Auto-loans have played a huge role in making vehicles affordable to the common man. Banks offer car loans at affordable interest rates and tenures without you having to stretch your monthly budget.

Key points to consider here are the value of vehicle and the depreciation factor (with time and usage). So, if you want to sell off your old car and buy a new one, you obviously want the best deal possible on your previous one. Based on this fact of value depreciation, you can plan your downpayment and opt for a comfortable EMI tenure.

Use online EMI calculator (available on the websites of most banks), a handy tool to check your eligibility within seconds from the comfort of your home/office. This tool basically consists of a formula box that has 3 sliders, namely Loan Amount, Loan Tenure, and Interest Rate. Once you fill in the details, you will be given how much EMI you will have to repay the bank monthly.

Formula for calculating EMI

You can calculate your EMI Amount with the help of the mathematical formula:

EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1] , where P, R, and N are the variables. This also means that the EMI value will change every time you change any of the 3 variables.

Let’s discuss these 3 variables in detail.

‘P’ stands for the Principal Amount. It is the original loan amount given to you by the bank on which the interest will be calculated.

‘R’ stands for the Rate of Interest set by the bank.

N is the number of years given for the repayment of the loan. Since EMIs are paid every month, the duration is calculated in the number of months.

So, if you take a car loan of Rs. 10 Lakh with an average interest rate of 12%, the approximate EMI will be:

P = 10 lakhs, R = 12%, N = 2 years or 24 months

[P x R x (1+R)^N]/[(1+R)^N-1]

EMI = [1000000 x 12/100 x (1+12)^24] / [(1+12/100)^24-1]

EMI = Rs. 47,073

How does an EMI Calculator work?

An EMI Calculator is a handy tool that calculates the monthly amount payable to the lender (Bank). To calculate the EMI applicable on your loan amount, you need to use the sliders above and adjust the values for principal Amount (P), Time duration (N), and Rate of interest (R).

Follow these steps to calculate your EMI Amount:

  • Use the slider for Selecting the Loan Amount
  • Select the Loan Tenure in Months using slider
  • Move the slider and select the Interest Rate
  • Recalculate your EMI anytime by changing the input sliders
  • EMI will be calculated instantaneously when you move the sliders.

Principal Loan Amount: This is the original amount lent to you by the bank/lender. The loan amount will depend on your need and the purpose of the loan. Higher the loan amount, higher will be the EMI.

Tenure: The tenure of a loan refers to the total time given for the repayment of the loan. Since the repayment is done every month, the tenure is calculated in months and not in years. So, a tenure of 2 years is equal to 24 months.

The Rate of Interest: This is the rate at which the interest is charged on the principal loan amount. The interest rate varies depending on the type of loan taken and the lender (bank) from which the loan has been taken. The rate of interest has a direct bearing on your EMI amount; hence, it is important to compare interest rates across banks before opting for a loan.

Factors Affecting Car Loan EMI

There are several factors which affect the EMI calculation. Since the EMI depends broadly upon the principal amount, tenure, and rate of interest, any change in these variables can cause a change in the EMI amount.

Prior to this, one should know that there are many other factors upon which the Amount of Car Loan granted can vary. For instance,

  • Category (Salaried, Self- Employed Professional or a Businessman, women)
  • Income Slabs
  • Age group
  • Tenure of Loan
  • New or used cars
  • Car loan scheme
  • Car loan applicant
  • Account with the Bank, etc.

Furthermore, the loan eligibility will also be dependent on the value of the car selected by you.

Benefits of Car Loan EMI Calculator

Car Loan EMI Calculator is a hassle-free generic tool where you don’t have to do anything except entering the 3 values. Coming to the benefits, it is like you are aware of what you are getting into. You have a crystal-clear idea of the loan amount, the tenure, and the interest you will be paying. This will help you in planning your budget beforehand.

So, to ease all your problems and arrange a better flow of money on time, invest in ELSS with ClearTax – it not only gives you great returns, but also saves up to Rs. 45,000 on taxes per year.

FAQs on Car Loan EMI Calculator

Q.1: How does the term (duration) affects my Interest charges?

A: It is important to realize that your interest rate is not the only factor that determines the total amount of interest charges you pay for your car loan. Your car loan term length plays a major role in how much you pay for your car no matter what interest rate you get. As a general rule, for the same interest rate, the longer your term length, the more your cumulative interest charge will be.

Q2 : What are the current interest rates for car loans?

At present, banks are providing car loans with annual interest rates ranging from 8.35% to 12%. During festive seasons, some banks agree to waive off processing fees or even relax their existing rates. Your credit history also plays a role as the lender decides on the interest rate. If you have a higher credit score, you may bargain for a lesser interest rate and vice versa.

Q3: Which one is better, Car Loan EMI Calculator or Excel Calculator?

A: If you are good with formulas and know how to use excel well, then excel calculator is a good idea. Car Loan EMI calculator is tailor-made. Since it caters to the need of calculating EMIs, so why to take so much of pain. Let’s save our energy for things that genuinely need it.

Q4: Can the Car Loan EMI calculated by the bank be different than that calculated by the EMI Calculator?

No, not at all. It will be the same, provided you enter the same value everywhere. Please note that even a minor change will result a change in the final value. It’s all calculation, output will depend upon the input.

Q5: Will the Car Loan EMI Calculator help me understand how much EMI is payable after I repay a certain amount of principal as a chunk during the loan tenure?

A: Yes. If you feed in details of the balance outstanding principal and the tenure (provided by the bank upon such prepayment), the EMI calculator will help you calculate your EMI for the balance outstanding period.