Car Loan EMI Calculator
Calculate your car loan EMI, total interest & repayment schedule with down payment analysis.
Car Loan EMI Calculator
Monthly EMI
₹0
Total Interest
₹0
Total Payment
₹0
Interest Saved
₹0
Amortization Schedule (Yearly)
| Year | Principal | Interest | Balance |
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EMI Comparison by Tenure
How EMI changes with different loan tenures for your car loan
| Tenure | Monthly EMI | Total Interest | Total Payment |
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How Car Loan EMI is Calculated
Car Loan EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your auto loan. The EMI depends on three key factors: the loan amount (on-road price minus down payment), the interest rate, and the loan tenure. Car loans are typically secured loans where the vehicle itself acts as collateral.
EMI Calculation Formula
EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ – 1]
- P = Principal Loan Amount (Car Price – Down Payment)
- r = Monthly Interest Rate (Annual Rate / 12 / 100)
- n = Loan Tenure in Months (Years × 12)
Example Calculation
For a car priced at ₹10,00,000 with ₹2,00,000 down payment at 9% p.a. for 5 years:
• On-Road Price: ₹10,00,000
• Down Payment: ₹2,00,000 (20%)
• Loan Amount (P): ₹8,00,000
• r = 9 / 12 / 100 = 0.0075
• n = 5 × 12 = 60 months
→ EMI = ₹16,602 (approx.)
→ Total Interest = ₹1,96,114
→ Total Payment = ₹9,96,114
What is Down Payment?
A down payment is the upfront amount you pay from your own savings when purchasing a car. Most banks finance 80-100% of the on-road price. A higher down payment means a smaller loan amount, which directly reduces your monthly EMI and total interest paid. Typically, a minimum 10-20% down payment is recommended.
Tips to Reduce Car Loan EMI
- 1 Make a Larger Down Payment: Paying 30-40% upfront reduces the loan amount significantly, lowering both EMI and total interest outgo.
- 2 Choose Shorter Tenure: While longer tenure reduces EMI, it increases total interest. A 3-5 year tenure offers the best balance for car loans.
- 3 Compare Interest Rates: Rates vary significantly between banks and NBFCs. Check for festive season offers and manufacturer tie-ups for lower rates.
- 4 Maintain a Good CIBIL Score: A credit score of 750+ helps you negotiate the lowest interest rates, potentially saving you thousands.
- 5 Consider Prepayment: Making part-prepayments whenever you have surplus funds reduces the outstanding principal and future interest.
Car Loan Interest Rates 2025
Compare car loan rates from top banks in India
| Bank / NBFC | New Car Rate | Used Car Rate | Max Tenure |
|---|---|---|---|
| SBI | 8.60% – 10.10% | 9.60% – 12.60% | 7 Years |
| HDFC Bank | 8.75% – 10.25% | 10.50% – 14.50% | 7 Years |
| ICICI Bank | 8.80% – 10.30% | 10.25% – 14.75% | 7 Years |
| Bank of Baroda | 8.55% – 9.55% | 9.55% – 11.05% | 7 Years |
| Kotak Mahindra | 9.00% – 10.50% | 11.00% – 15.00% | 7 Years |
| Axis Bank | 8.90% – 10.40% | 11.25% – 15.50% | 7 Years |
| PNB | 8.60% – 9.60% | 9.60% – 11.60% | 7 Years |
| Mahindra Finance | 9.50% – 12.00% | 11.00% – 14.50% | 5 Years |
* Rates are indicative and vary based on CIBIL score, income, and vehicle segment. Last updated: Jan 2025.
Eligibility Criteria
- Age: 21–65 years at loan maturity
- Salaried: Min 1 year continuous employment
- Self-Employed: Min 2 years in business
- Minimum annual income: ₹3–5 Lakh
- CIBIL score: 700+
Documents Required
- Identity Proof (PAN / Aadhaar / Passport)
- Address Proof (Utility Bill / Aadhaar)
- Income Proof (Salary Slips / ITR)
- Bank statements (Last 3-6 months)
- Proforma Invoice from dealer
New Car vs Used Car Loan
New Car Loan
- • Lower interest rates (8.5% – 10.5%)
- • Higher loan-to-value ratio (up to 100%)
- • Longer tenure available (up to 7-8 years)
- • Better festive offers & dealer discounts
Used Car Loan
- • Higher interest rates (10% – 15%)
- • Lower loan-to-value ratio (70-85%)
- • Shorter tenure (up to 5-7 years)
- • Vehicle age limit (typically max 10 yrs at maturity)