Car Loan EMI Calculator
Work out the EMI on your new or used car from the on-road price, see what a dealer’s flat rate really costs, compare 3 to 7 year loans and check what closing the loan early saves.
At a glance
- Starts from the on-road price: ex-showroom price + RTO and road tax + insurance + accessories, less your down payment.
- Example: a ₹9.2 lakh loan at 9% for 5 years has an EMI of ₹19,098 and total interest of ₹2,25,861.
- Converts a flat rate to the reducing-balance rate it really is: 7% flat for 5 years costs 12.50% a year, 8% flat costs 14.13%.
- Adds the processing fee with 18% GST to the cost and shows the true yearly cost (APR) – a 0.5% fee lifts 9% to about 9.25%.
- Compares 3- to 7-year loans side by side: at 9%, stretching ₹9.2 lakh from 3 to 7 years halves the EMI but raises the interest from ₹1.33 lakh to ₹3.23 lakh.
- Early closure: the outstanding amount, the foreclosure charge with GST and what you save. RBI rules bar pre-payment charges on floating-rate loans to individuals sanctioned or renewed from 1 January 2026.
- Checks the 20/4/10 rule of thumb and builds a full year-by-year and month-by-month schedule. Nothing you enter leaves your browser.
Step by step
How to calculate your car loan EMI
- 1
Enter the on-road price
Type the ex-showroom price, RTO and road tax, insurance and accessories from the dealer’s quotation.
- 2
Set your down payment
Type an amount or tap 10%, 20% or 30%; the loan amount updates.
- 3
Enter the rate and tenure
Choose Reducing balance for a bank-quoted rate or Flat for a dealer’s flat rate, then pick 3–7 years.
- 4
Add the processing fee
Enter the fee as a % of the loan; GST is added at 18%.
- 5
Read the result
See the EMI, total interest, APR and total cost, compare tenures, and check what closing early would save.
Features
Everything you need, nothing you don’t
The whole price, not just the sticker
Road tax, insurance and accessories add a good deal to the ex-showroom price. Enter them once and the loan follows.
See through flat rates
A flat rate charges interest on the full loan for the whole term, so it looks about half as expensive as it is. The calculator shows the real rate to compare.
Fees count too
The processing fee and its GST are added to the cost and folded into an APR, so offers with different fees compare fairly.
Pick a sensible tenure
A table of 3- to 7-year loans shows how a smaller EMI trades against more interest. Tap a row to switch to it.
Plan an early close
Choose when you might pay off the loan and the charge your lender takes, and see whether it is worth it.
Private
Everything is worked out on your device. Your last figures are kept in this browser for next time.
Car loan EMI formula
Banks work out a car loan EMI on the reducing balance: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. Each EMI pays the month’s interest on what you still owe, and the rest reduces the loan.
With a flat rate, interest is worked out on the full loan for the whole term – P × rate × years – and added to the loan before dividing by the months. Because you are paying interest on money you have already repaid, a flat rate costs much more than the same number on a reducing balance.
| Flat rate | Tenure | Equivalent reducing rate |
|---|---|---|
| 6% | 3 years | 11.08% |
| 7% | 5 years | 12.50% |
| 7% | 7 years | 12.16% |
| 8% | 5 years | 14.13% |
| 9% | 5 years | 15.71% |
EMI for ₹9.2 lakh at 9% by tenure
A car loses value every year, so a long loan can leave you owing more than the car is worth. Keeping the tenure short keeps interest down and the loan below the car’s value.
| Tenure | EMI | Total interest |
|---|---|---|
| 3 years | ₹29,256 | ₹1,33,207 |
| 4 years | ₹22,894 | ₹1,78,923 |
| 5 years | ₹19,098 | ₹2,25,861 |
| 6 years | ₹16,583 | ₹2,74,012 |
| 7 years | ₹14,802 | ₹3,23,364 |
The 20/4/10 rule
A popular rule of thumb for buying a car: put down at least 20%, borrow for no more than 4 years, and keep the EMI – ideally all car costs, including fuel and insurance – within 10% of your income. It is a guide rather than a rule, but it keeps a car affordable for the whole loan.
FAQ
Frequently asked questions
How is car loan EMI calculated?
Is a flat interest rate cheaper?
Is the loan on the ex-showroom or the on-road price?
Can I close my car loan early?
What is a good tenure for a car loan?
Does the processing fee matter?
Keep going
Related tools
EMI Calculator
Calculate your loan EMI, total interest and full repayment schedule instantly. See yearly charts, the impact of prepayments and download the schedule.
Home Loan EMI Calculator
Free home loan EMI calculator: EMI, interest and schedule, prepayments that cut years off, rate changes, RBI LTV limits, tax benefit and loan eligibility.
Income Tax Calculator
Free income tax calculator for India, FY 2026-27 and 2025-26: compare the new and old regimes with HRA, 80C, 80D, NPS and home loan, slab by slab.
Auto Loan Calculator
Free US auto loan calculator with trade-in, payoff owed, sales tax, rebates and fees: monthly payment, out-the-door price, total cost and low-APR vs cash back.
BMI Calculator
Free BMI calculator: enter height in feet or cm and weight in kg or lb to see your BMI, WHO or Asian (Indian) category and healthy weight range.
Age Calculator
Calculate your exact age in years, months and days, the next birthday countdown and age on any date. Check exam age limits as on a cut-off date. Free.
Last updated Report a problem or suggest a feature