Car Loan EMI Calculator
EMI and total cost of your new or used car loan
Your Car Loan EMI
- Principal₹8,00,000(80%)
- Interest₹1,96,401(20%)
Year-by-year repayment
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | ₹1,32,664 | ₹66,616 | ₹6,67,336 |
| 2 | ₹1,45,109 | ₹54,171 | ₹5,22,227 |
| 3 | ₹1,58,721 | ₹40,559 | ₹3,63,506 |
| 4 | ₹1,73,610 | ₹25,670 | ₹1,89,896 |
| 5 | ₹1,89,896 | ₹9,384 | ₹0 |
- 1Enter the on-road priceEx-showroom + RTO + insurance
- 2Add down payment and rateAnd the tenure in years
- 3See your EMIPlus the car's real total cost
How is car loan EMI calculated?
Car loans from banks use the reducing-balance EMI formula. The loan is the on-road price minus your down payment.
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = on-road price − down payment, r = yearly rate ÷ 12 ÷ 100, n = months
The 20/4/10 rule of thumb
A common guideline: put at least 20% down, borrow for no more than 4 years, and keep the EMI plus running costs under 10% of your monthly income. A bigger down payment and a shorter tenure cut the interest you pay the most.
Watch the extra costs
Dealers may add processing fees, documentation charges and costly insurance or accessories to the loan. Ask for the key facts statement, which must show the annual percentage rate (APR) including all fees.
Related calculators
Frequently asked questions
How much car loan can I get?
Banks usually fund 80–90% of the on-road price (some up to 100% for select models), as long as your total EMIs stay within about 50% of your take-home pay.
Is a used car loan costlier?
Yes, used car loans usually carry rates 2–5% higher and shorter tenures. Enter your offered rate to compare.
Can I close my car loan early?
Usually yes. Fixed-rate car loans may carry a foreclosure charge of 2–5% of the outstanding amount; check your loan agreement.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
Last reviewed: October 2026