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### Car Loan EMI Calculator

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MONTHS
%
Yearly/monthly repayment schedule
2024
MonthBeginning balanceEMIPrincipalInterestEnding Balance
Jul2,00,00017,40716,0571,3501,83,943
Aug1,83,94317,40716,1651,2421,67,778
Sep1,67,77817,40716,2741,1331,51,504
Oct1,51,50417,40716,3841,0231,35,120
Nov1,35,12017,40716,4959121,18,625
Dec1,18,62517,40716,6068011,02,019
2025
MonthBeginning balanceEMIPrincipalInterestEnding Balance
Jan1,02,01917,40716,71868985,301
Feb85,30117,40716,83157668,470
Mar68,47017,40716,94546251,525
Apr51,52517,40717,05934834,466
May34,46617,40717,17423317,292
Jun17,29217,40717,2901172
EMI payable
Payable amount
Total Interest
Loan amount

Car Loan EMI Calculator is an online tool that helps you compute your dream car's EMI. Knowing an EMI before taking any loan is important for your budget planning. Car Loan EMI Calculator provides you EMI amount based on these inputs:  loan amount, interest rate, and loan tenure. It allows you to calculate different EMI on various loan inputs. You can budget your finances before taking a car loan to enjoy driving your ever-wanted vehicle later peacefully.

## How does Car Loan EMI Calculators work?

You can calculate the Car Loan 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, each time you change any of the three variables. Let’s discuss these three 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. As you must pay the EMIs each month, the duration is calculated in the number of months.

So, if you take a car loan of Rs 10 lakh at an interest rate of 12%,

the approximate EMI will be: P = Rs 10,00,000,

• R = 12/100/12 (You must convert into months),
• N = 2 years or 24 months.
• EMI = [10,00,000 x 12/100/12 x (1+12/100/12)^24] / [(1+12/100/12)^24-1]
• EMI = Rs 47,073.

## How to use the ClearTax Car Loan Calculator?

• Use the slider and select the loan amount.
• You then select the loan tenure in months.
• Move the slider and select the interest rate.
• The calculator would show you the EMI payable, total interest and the total payable amount.
• Recalculate your EMI anytime by changing the input sliders.
• EMI will be calculated instantly when you move the sliders.

## Advantages of using ClearTax Car Loan EMI Calculator

• Time-saving: Quickly calculates EMIs without the need for complex manual calculations.
• Financial Planning: Helps in organizing your finances before applying for a car loan.
• Clarity: Provides a clear understanding of the monthly EMI amounts.
• Comparison: Allows comparison of different loan amounts, tenures, and interest rates to find the best option.
• Informed Decisions: Assists in selecting the appropriate loan tenure based on your financial situation: Shorter tenure results in higher EMIs but lower overall interest. Longer tenure results in lower EMIs but higher overall interest.
• Convenience: Easy to use with just basic loan details needed (amount, tenure, interest rate).
• Cost Savings: Helps identify the most cost-effective repayment plan.
• Stress Reduction: Eliminates uncertainty and stress associated with calculating EMIs manually.

## Factors Affecting Car Loan EMI

Several factors affect the car loan EMI calculation. As the EMI depends broadly on the principal amount, tenure, and rate of interest, any change in these variables can result in a change in the EMI amount. The other factors are:

• Category (Salaried, Self- Employed Professional or a Businessman)
• Income slabs
• Age group
• Tenure of loan
• New or used cars
• Car loan scheme
• Car loan applicant
• An account with the bank

The loan eligibility will also depend on the value of the car selected by you.

How does the term (duration) affect my interest amount?

It is essential to realise that your interest rate is not the only factor that determines the total amount of interest you pay on your car loan. Your car loan tenure plays a significant role in determining the interest amount you repay the lender. As a general rule, for the same interest rate, the longer your duration, the higher are the interest repayments.

What are the current interest rates for car loans?

Banks are offering car loans with annual interest rates ranging from 8.5% to 12%. During festive seasons, some banks agree to waive off processing fees or even relax their current rates. Your credit history also plays a major role while you negotiate on the interest rates. If you have a higher credit score, you may bargain for a lower interest rate.

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

The Car Loan EMI calculator is tailor-made to calculate the Car Loan EMIs in seconds. It’s easier to use the Car Loan EMI Calculator as compared to the Excel Calculator.

Can the Car Loan EMI calculated by the bank be different from that calculated by the EMI Calculator?

It will be the same, provided you enter the same values. Please note that even a minor change will result in a difference in the final value. If the bank modifies some of the parameters, you will find the figures to be different from the EMI Calculator.

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?

Yes. Feed in the details of the outstanding balance principal and the tenure (provided by the bank on such prepayment). The EMI calculator will help you calculate your EMI for the outstanding balance period.

Is the car loan calculator the same as home, personal loan calculator?

These calculators are the same at the primary level. However, the Car Loan EMI Calculator shows you the specific information on the car loan.

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