Car Loan EMI Calculator
Quickly calculate your car loan EMI with our car loan calculator. Adjust loan amount, interest rate, and tenure to plan repayments and choose the option that suits your budget.
₹10,00,000.00
₹1,00,000.00
₹0.00
9.00 %
5 years
⚠️ Disclaimer: The amortization schedule is an estimate and may differ across banks based on applicable fees or additional charges.
| Year | Principal Amount | Interest Amount | Closing Balance |
|---|
What is a Car Loan?
A Car Loan is a type of loan provided by banks or lenders to help you purchase a vehicle. The car itself usually acts as collateral for the loan.
Loan Amount
The loan amount is the total money borrowed from a lender to buy a car, after subtracting any down payment or trade-in value. It is repaid in monthly installments.
Interest Rate
The interest rate is the cost of borrowing money, expressed as a percentage. A lower rate reduces your total loan cost.
Loan Term
The loan term is the time period you have to repay your car loan, commonly 36, 48, 60, or 72 months. Shorter terms have higher payments but lower total interest.
Monthly Payment
Your monthly payment is the fixed amount you pay each month to the lender, which includes both the loan principal and interest.
Total Cost of the Loan
The total cost of the loan is the sum of the loan amount and all interest paid over the loan term. It’s useful for comparing financing options.
Car Loan Formula
Loan Payment Formula
Where:
Car Loan Example
Example Calculation
A ₹25,000 car loan with an annual interest rate of 6%for a term of 5 years (60 months).
Step 1: Monthly Interest Rate
r = 6% ÷ 12 = 0.5% (0.005)
Step 2: Apply Formula
Step 3: Results
- Monthly Payment ≈ ₹483.32
- Total Cost of the Loan = ₹28,999.20
- Total Interest Paid = ₹3,999.20