Car Loan EMI Calculator

Have you been dreaming of buying a new car for yourself or even a used one but not sure how much you will have to pay in EMIs? We have the perfect solution for you. ...

Money View’s car loan EMI calculator is easy to use and gives you quick results. All you need to do is enter details such as loan amount to be availed, the interest rate charged, and repayment tenure and leave the rest to us.

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Your EMI

₹1,98,924

₹91,390

₹15,91,390

Loan Amount
|
50k
|
25L
|
50L
|
75L
|
1CR
|
1.25CR
|
1.5CR
|
1.75CR
|
2CR
Rate of Interest
|
8%
|
12%
|
16%
|
20%
|
24%
|
28%
|
32%
|
36%
Tenure
|
3mth
|
12mth
|
24mth
|
36mth
|
48mth
|
60mth
|
72mth
|
84mth

Your EMI

₹1,98,924

₹91,390

₹15,91,390

  • Loan Amount

  • Total interest

EMI Schedule

Month Opening Balance Interest Principal Closing Balance
Apr '21 ₹ 15,00,000 ₹ 20000 ₹ 1,78,924 ₹ 13,21,076
May '21 ₹ 13,21,076 ₹ 17,614 ₹ 1,81,309 ₹ 11,39,766
Jun '21 ₹ 11,39,766 ₹ 15,197 ₹ 1,83,727 ₹ 9,56,039
Jul '21 ₹ 9,56,039 ₹ 12,747 ₹ 1,86,176 ₹ 7,69,862
Aug '21 ₹ 7,69,862 ₹ 10,265 ₹ 1,88,659 ₹ 5,81,203
Sep '21 ₹ 5,81,203 ₹ 7,749 ₹ 1,91,174 ₹ 3,90,028
Oct '21 ₹ 3,90,028 ₹ 5,200 ₹ 1,93,723 ₹ 1,96,305
Nov '21 ₹ 1,96,305 ₹ 2,617 ₹ 1,96,306 ₹0.00

Car Loan EMI Calculator

MoneyView has come up with an easy-to-use EMI calculator. With our Car Loan EMI Calculator, you can easily find out your EMI as well as a breakdown of the installments based on different interest rate slabs, repayment tenure, and the amount borrowed.

How does the Money View Car Loan Calculator Work?

The Money View car loan EMI calculator is designed to be extremely easy to navigate. Follow the steps below to find out your EMI -

  • Enter the loan amount that has been borrowed. You can use the slider to adjust the amount

  • Next, enter the interest rate that is being charged by using the slider to adjust the number

  • Lastly, provide the repayment tenure that you wish to choose

And voila! The monthly EMI that you will have to pay will be calculated and displayed for you.

The amount you pay as EMI can significantly determine your financial plan for the future. Using our car loan EMI calculator, you can easily plan out how much you can save and other finances by knowing how much EMI you will have to pay. This way your dream of owning a car can also become a reality thanks to proper planning from your side.

Car Loan EMI Calculation Formula

The formula for calculating EMI is as follows:

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

Where P is the principal amount that you wish to borrow

R represents the rate of interest imposed

N represents the repayment tenure in months

For example, if Rs. 5,00,000 is the amount borrowed (P), 7% is the rate of interest imposed (R), and the 36 months is the tenure (n), the EMI to be paid using the above formula will be:

5,00,000 x 0.00583 x (1+0.00583)^36 / [(1+0.00583)^36-1] = Rs.15,439 (per month)

The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (36/12/100 = 0.00583)

Car Loan Amortization Schedule

Now that you have found out your monthly EMI, it is time to understand what your loan repayment schedule is going to be throughout the entire repayment tenure. Given below is the car loan amortization schedule for the above example. The EMI being paid every month reduces the principal and interest payments over the duration of the repayment.

For eg., for a principal amount of Rs.5,00,000 with interest rate and repayment tenure being 7% and 3 years respectively, the EMI amount based on the formula is Rs. 1,85,268 per year or Rs. 15,439 per month. This EMI amount over time results in a reduced principal and interest amount being paid every year until the loan is fully repaid. The table below illustrates the amortization schedule of this loan in detail.

Year Opening Balance EMI Paid or each year (Principal + Interest) Closing Balance
Interest Repaid Principal Repaid

2021

₹5,00,000

₹30,084

₹1,55,179

₹3,44,821

2022 

₹3,44,821

₹18,866

₹1,66,396

₹1,78,425

2023 

₹1,78,425

₹6,837

₹1,78,425

₹0


Factors Affecting Car Loan Interest Rates

Everyone wants to avail of loans at a low rate of interest but this is dependent on a number of factors. Given below are key elements that affect car loan interest rates -

  • Credit Score

If there is one factor that largely determines the interest rate charged on a loan, it is your credit score. The higher your credit score (above 700), the greater are your chances of availing a loan at low-interest rates. This is because a high credit score indicates that you are creditworthy and are therefore less likely to default on the loans.

  • Repayment Tenure

The shorter the repayment tenure, the lower is the interest rate. However, the amount you pay as EMI will be slightly higher. Therefore, as an applicant, you must choose a repayment term that is beneficial for you financially and can help you pay off your loan easily.

  • Employment Status of the Applicant

Lower the debt to income ratio, better are your chances of availing a low-interest rate loan as you are less likely to default on payments. This also means that the risk for lenders is low therefore will offer loans that have competitive interest rates.

  • Down Payment

If the down payment amount is high, the amount of loan that you wish to avail will be low thereby decreasing the risk of defaulting for lenders. In such a scenario, as the likelihood of default is less, the loan will be provided at a lower interest rate.

  • Age and Model of Car

Cars are a necessity in today’s times but are also considered to be depreciating assets as their value reduces over time. Additionally, car loans are secured loans which means that the vehicle in question will be hypothecated to the bank until the loan has been repaid. The resale value of the car is a deciding factor for the bank when providing loans. Older and used models are considered to be riskier as their resale value is lower. Therefore car loans for vehicles that are new can be availed at a relatively lower rate of interest as opposed to older or used cars.

Car Loan EMI Related FAQs

Car loans or auto loans are secured loans that can be availed against a car that you wish to purchase - either new or second-hand. These loans are secured i.e., hypothecated against the asset in question. Since these loans are popular, there are a number of lenders in the market who offer car/auto loans to applicants. Additionally, borrowers today can also avail of personal loans to purchase a car.

EMIs or Equated Monthly Installments is the monthly amount made by the borrower to the lender to repay a loan. This amount is determined by the loan amount that is borrowed, the rate of interest imposed, and the repayment term chosen.

A flat interest rate refers to a lending rate that does not change during the entire repayment tenure. The interest rate in this case is calculated for the entire loan amount right at the start of the loan term. The advantage is that the applicant will have an idea of the repayment amount that will be charged throughout the loan term making it easier for financial planning. However, the EMI in this case is on the higher side. When it comes to reducing the balance interest rate, the interest accrued will vary depending on the outstanding loan amount, i.e., the principal amount remaining after each payment resulting in a relatively lower EMI.

Foreclosing a car loan is dependent on the lender. Certain lenders allow borrowers to foreclose a loan only after a certain number of EMIs have been made or charge a penalty for the same. Borrowers are advised to consult their lending institution regarding loan foreclosure.

When you avail of a loan, you should ensure that you are in a position to repay it. Not doing so will invite hefty fines from the lender. Additionally, your credit score will also get severely affected. In case you are unable to repay the loan due to unavoidable circumstances, communicating the same to the lender at the earliest is necessary as solutions such as moratoriums or a longer repayment period may be offered.