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.

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
Jun '21 ₹ 15,00,000 ₹ 20000 ₹ 1,78,924 ₹ 13,21,076
Jul '21 ₹ 13,21,076 ₹ 17,614 ₹ 1,81,309 ₹ 11,39,766
Aug '21 ₹ 11,39,766 ₹ 15,197 ₹ 1,83,727 ₹ 9,56,039
Sep '21 ₹ 9,56,039 ₹ 12,747 ₹ 1,86,176 ₹ 7,69,862
Oct '21 ₹ 7,69,862 ₹ 10,265 ₹ 1,88,659 ₹ 5,81,203
Nov '21 ₹ 5,81,203 ₹ 7,749 ₹ 1,91,174 ₹ 3,90,028
Dec '21 ₹ 3,90,028 ₹ 5,200 ₹ 1,93,723 ₹ 1,96,305
Jan '22 ₹ 1,96,305 ₹ 2,617 ₹ 1,96,306 ₹0.00

Car Loan EMI Calculator

Are you planning to buy a car? Instead of spending your hard earned money in one go, using a car loan to fund this purchase is much more beneficial. If you are wondering how much your EMIs will come up to, our car loan rate of interest calculator is the perfect option for you.

How to Use a Car loan Rate of Interest Calculator

Car loan EMI calculators also known as car loan eligibility calculator or car loan rate of interest calculator can be intimidating to use which is why the Money View Car Loan EMI Calculator is designed to be as simple and easy as possible. 

 Follow the simple steps below to calculate your monthly EMI online and plan your budget.

  • STEP 1: Add the loan amount that has been borrowed. You can use the slider to adjust the amount

  • STEP 2:  Next, enter the rate of interest that is charged. This can again be adjusted by using the slider

  • STEP 3: Lastly, provide the repayment tenure that you have chosen in either months or years

And voila, the EMI amount to be paid will be displayed along with the EMI repayment schedule and interest to be paid.

The Money View Car Loan EMI Calculator comes with a number of features such as quick and easy EMI calculation which reduces the chances of error. Using this calculator, individuals can also check the EMI they may have to pay before availing a car loan and in turn manage their finances efficiently.

Formula to Calculate Car Loan EMI 

Car loan EMI can be calculated by using the formula given below -

E =  [P x R x (1+R)^N] /[(1+R)^N-1]

Where P stands for the principal amount that is borrowed

R represents the rate of interest imposed

N is the tenure in number of months

Let us understand this with an example -

  • Rs. 4,00,000 is the amount borrowed (P)

  • 7.5% is the annual rate of interest imposed 

  • 48 months(4 years) is the tenure (n)

Then the EMI to be paid using the above formula will be:

[4,00,000 x 0.00666 x (1+0.00666)^48 ]/ [(1+0.00666)^48-1]  = Rs. 9,765

Therefore, Rs. 4 lakh car loan EMI will be Rs. 9,765.

The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (7.5/12/100 = 0.00666)

The above formula can be used to calculate EMIs for all types of loans and not just car loans, unless mentioned otherwise.

Amortization table or EMI schedule is a table that illustrates how your EMIs are paid each month and its impact on your principal and interest amount. Though your EMI remains the same throughout the repayment term, your principal and interest amount will reduce over time. This change is illustrated through an amortization table. 

Given below is the table for the above example -

Year

Principal

Interest

Total Payment

Balance

2022

₹ 4,00,000

₹ 28,806

₹ 88,368

₹ 3,11,632

2023

₹ 3,11,632

₹ 21,474

₹ 95,704

₹ 2,15,928

2024

₹ 2,15,928

₹ 13,529

₹ 1,03,644

₹ 1,12,284

2025

₹ 1,12,284

₹ 4,926

₹ 1,12,249

₹ 35

2026

₹ 35

₹ 0

₹ 0

₹0.00

If you are new to car loan EMI calculation, here’s an example to help you out -

Naren wants to buy a new car and wants to use a car loan to fund this process. His budget is Rs. 5,00,000 and after doing preliminary research, he estimates that his annual interest rate would be around 9% per annum and a repayment term of 3 years or 36 months.

After using the Money View Rs. 5 Lakh Car loan EMI calculator, he easily finds out that his monthly EMI would come up to Rs. 15,900 with the interest component adding to Rs. 72,395.

Her Rs. 5 lakh car loan EMI amortization schedule or EMI schedule is as follows -

Month

Opening Balance

Interest

Principal

Closing Balance

2022

₹ 5,00,000

₹ 38,834

₹ 1,51,962

₹ 3,48,038

2023

₹ 3,48,038

₹ 24,578

₹ 1,66,216

₹ 1,81,822

2024

₹ 1,81,822

₹ 8,986

₹ 1,81,808

₹ 14

2025

₹ 14

₹ 0

₹ 0

₹0.00

In this way, Naren has efficiently used a car loan EMI calculator online to plan his spending so that his finances are not impacted negatively.

The type of interest calculation used for EMI can determine the amount that you pay. There are largely two ways of calculating this - flat balance and reducing balance method.

Here are some of the differences between the two -

Flat Balance Interest Calculation

Reducing Balance Interest Calculation

Based on the entire loan amount availed

Interest calculated only on the outstanding principal amount each month

Calculated on the overall repayment term

Calculated on a monthly basis

Interest stays the same throughout loan tenure

Interest calculation varies based on outstanding loan amount

Overall EMI amount tends to be slightly higher

Overall EMI amount tends to be slightly lower

Formula used for calculation is -

Interest = (Principal * loan tenure * interest rate per annum)/ Total number of installments

Formula used for calculation is -

Interest = Outstanding Loan Amount * Applicable Interest for Each Installment


The reducing balance interest method is generally used by banks to calculate the EMI and is the basis for the Money View car loan EMI calculator as well.

Here’s a simple example to illustrate the differences between the two -

Rahul has taken a loan of Rs. 85,000. The interest rate imposed is 16% per annum with a repayment term of 8 months.

If he uses a flat balance method of interest calculation, his EMI will be - Rs. 11,758 and his EMI schedule will be -

FLAT RATE CALCULATION

EMI

Interest

Principal

Balance Due

11758

1133.33

10625.00

74375.00

11758

1133.33

10625.00

63750.00

11758

1133.33

10625.00

53125.00

11758

1133.33

10625.00

42500.00

11758

1133.33

10625.00

31875.00

11758

1133.33

10625.00

21250.00

11758

1133.33

10625.00

10625.01

11758

1133.33

10625.00

0.01

 Now if he uses the reducing balance method of calculation, his EMI will be - Rs. 11,272 and his EMI schedule will be -

REDUCED BALANCE CALCULATION

EMI

Interest

Principal

Balance Due

11272

1133.33

10139.02

74860.98

11272

998.15

10274.20

64586.78

11272

861.16

10411.19

54175.59

11272

722.34

10550.01

43625.58

11272

581.67

10690.67

32934.91

11272

439.13

10833.22

22101.69

11272

294.69

10977.66

11124.03

11272

148.32

11124.03

0.00

As illustrated by the tables above, his EMI will be lower through the reducing balance method of calculation. The good news is that most lenders opt for this method of calculation.

Having a low car loan EMI is every borrower’s dream and this is possible. Here are a few factors that have an impact on your car loan EMI -

  • Loan Amount

The amount you borrow determines your EMI amount. If the loan amount is high it may be hard for you to repay your loan.

  • Credit Score and Rate of Interest

If your credit score is good i.e. above 750 then it becomes easy for you to avail a loan at lower rates of interest and at a repayment term that is affordable. Lower the rate of interest then lower is the EMI amount.

  • Existing Debt

Existing debt is not an issue as long as you don’t have too many loans running at the same time. Not only will it be hard for you to repay your EMI, lenders may also perceive you to be credit-hungry and refuse to lend to you.

  • Repayment Tenure

The time taken to repay the loan amount is inversely proportional to the EMI amount i.e. a lengthy tenure implies that the EMI amount to be paid each month is lower and vice versa. 

But, taking a longer repayment period is not recommended as you will end up paying a higher interest amount overall.

  • Type of Interest Rate

The type of interest rate chosen can have an impact on your EMI. Please note that this is not the same as interest rate calculation. A fixed interest rate will ensure the same interest rate throughout the repayment term. But if a floating interest rate is chosen then your interest rate may vary based on the RBI’s directives and can be lower or higher than expected.

  • Age and Income

The older you are, the harder it is to avail a loan and this is especially the case if you are closer to retirement age. 

If your income is not steady or high then lenders will not provide loans easily. As long as your repayment ability is not assured, you will not be able to avail a loan quickly.

This is also the case with age. If you are closer to the retirement age (~60) and do not have regular income, loans won’t be available as easily.

Here’s why using  Car loan prepayment calculator is beneficial -

  • If you can find out how much EMI to pay, then you can easily plan out your budget as well. Our car loan installment calculator can help with this

  • Have you made mistakes while manually calculating EMIs? Our Money View car loan Eligibility Calculator can help you avoid these errors

  • Using a car loan EMI calculator online can help you save on time and effort

  • You can access the EMI calculator online easily at any time from anywhere

  • More importantly, if you know how much to pay, you can avoid the hassles of delayed or missed payments which can severely hamper your credit score


Other Loan EMI Calculators

Car Loan EMI Related FAQs

Ans: 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.

Ans: 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.

Ans: 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.

Ans: If your question is ‘What is the EMI for a 6 lakh car’ then here is your answer.

Your EMI will depend on three factors -

  • The amount being borrowed

  • Rate of interest

  • Repayment term

In this case, let us assume that your rate of interest is 9% per annum with a repayment term of 18 months. The easiest way to find out your EMI is to use the Money View Car loan EMI Calculator.

Using this calculator, Rs. 6 lakh car loan EMI is Rs. 35,759 with the interest amount coming up to Rs. 43,655.

Ans: The amount you avail as loan depends on multiple factors. The main factors are -

  • Your credit score - Higher the credit score, higher is the loan amount you are eligible for

  • Age and income - If you are in the earning bracket (18 to 57) and you have a good income then you may avail loans a lot more easily

  • Debt-to-income ratio - Even if your salary is high, if you have multiple loans running at the same time then lenders may not provide loans easily as they will see you as being credit-hungry.

Depending on the above factors, your loan eligibility will be determined.

Ans: Generally, the minimum down payment you need for a car loan is 10% of the on-road price of the car. This is because most lenders offer 90% of the on-road price of the vehicle and sometimes even 100%. But if you pay a hefty down-payment, not only will you need a lower loan amount, your monthly EMIs and interest imposed will also be low.

For example, Sara decided to purchase a car worth Rs. 3 lakh. Instead of availing a loan amount for the entire price of the car, she decided to pay a downpayment of Rs. 50,000. She then availed a loan of Rs. 2,50,000 at 8% interest rate and a 15 month repayment term. Her monthly EMI in this case comes up to Rs. 17,569. In case she had not paid a certain amount towards down payment, then her EMI would have come up to Rs. 21,083.