A Car Loan EMI calculator is an online tool that quickly estimates your monthly repayment based on the loan amount, tenure, interest rate, and car type (new or pre-owned). It breaks down the EMI into principal and interest, helping you plan better, though actual figures may slightly vary.
Some of ways in which using the SBI car loan EMI calculator offered can be useful are as follows:
The SBI Car Loan EMI Calculator uses the below-mentioned standardised formula to determine the EMI amount-
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
Where,
Note: The formula does not take into account the amount that was extended as pre-payment towards the amount received as an SBI car loan.
Let’s assume you availed of an SBI car loan of Rs 5 lakh at the rate of 8.7% per annum for a tenure of five years or 60 months.
By using the above formula:
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
EMI= [5,00,000 x 0.725% x (1+0.725%) ^ [(1+0.725%) ^ (60-1)]
EMI= 10,307
Therefore, your equated monthly installment for the selected time period will amount to Rs.10,307.
The EMI formula helps you accurately calculate your monthly loan repayment by considering the loan amount, interest rate, and tenure. Understanding its components ensures better financial planning and informed borrowing decisions.