Calculators · Loans
Car loan EMI calculator
The EMI and total cost of a new or used car loan.
Monthly EMI
₹16,607
For 60 months
Principal
₹8 lakh · 80%
Total interest
₹1.96 lakh · 20%
- Loan amount
- ₹8,00,000
- Total interest
- ₹1,96,401
- Total you repay
- ₹9,96,401
Year by yearShow 5 rowsHide
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹1,32,664 | ₹66,616 | ₹6.67 lakh |
| 2 | ₹1,45,109 | ₹54,171 | ₹5.22 lakh |
| 3 | ₹1,58,721 | ₹40,559 | ₹3.64 lakh |
| 4 | ₹1,73,610 | ₹25,670 | ₹1.9 lakh |
| 5 | ₹1,89,896 | ₹9,384 | ₹0 |
How it works
Your EMI is the same every month, but its make-up changes: early instalments are mostly interest, and as the balance falls more of each payment goes towards the principal. The year-by-year schedule shows exactly how.
The calculation uses a reducing balance — interest is charged only on what you still owe — which is how banks and housing finance companies price home, car and personal loans in India.
Formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P — loan amount
- r — monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — number of monthly instalments
Questions
What tenure should I choose for a car loan?
Car loans run up to seven years, but a shorter tenure keeps the total interest down. A useful guide is to repay the loan well before the car's value drops below what you still owe.
Is the dealer's quoted rate flat or reducing?
Ask. Dealers sometimes quote a flat rate, which looks lower than the equivalent reducing rate. This calculator uses the reducing method banks use.
Are there charges beyond the EMI?
Usually a processing fee, insurance, and possibly a foreclosure charge if you repay early. Include them when you compare offers.
Results are estimates for planning, not tax, legal or investment advice. Rates and rules were checked on 4 October 2026; confirm the figures that apply to you with your bank, fund house or tax adviser.