How the Car Loan EMI Calculator Works
This car loan EMI calculator uses the standard reducing-balance method used by Indian banks and NBFCs to compute your fixed monthly instalment.
Enter your car loan amount, the interest rate offered by your lender, and your preferred loan tenure (typically 1–8 years for car loans).
The results show your monthly EMI, total interest payable over the loan tenure, and a year-wise breakdown of principal versus interest paid.
Formula Used
Car loan EMI is calculated using the standard reducing-balance formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)- PCar loan principal amount
- rMonthly interest rate (annual rate ÷ 12 ÷ 100)
- nTotal number of monthly instalments (tenure in years × 12)
Example Calculation
Suppose you take a car loan for 5 years at a 9% annual interest rate.
- Car Loan Amount₹8,00,000
- Interest Rate9% p.a.
- Tenure5 years
- ResultMonthly EMI ≈ ₹16,607 (Total Interest: ₹1.96 Lakh)
Important Assumptions
- Interest is assumed to be calculated on a reducing monthly balance, in line with standard Indian car loan practice.
- The interest rate is assumed to remain fixed for the entire tenure.
- This calculator does not include processing fees, insurance premiums, road tax, or prepayment/foreclosure charges.
- On-road price components such as registration and insurance are not factored into the loan amount automatically — enter your actual financed amount.