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Car Loan EMI Calculator India 2025

Calculate your monthly EMI, total interest, and payment schedule for your dream car.

Smart Car Loan Planner

How Much Will Your Car Loan EMI Be in 2025?

Tweak price, down payment, tenure, and rate to see a live EMI that suits your fuel budget. Discover the sweet spot before you sign the dotted line.

Car Loan EMI Planning
₹

Twelve Lakhs rupees

₹2L₹50L
₹

Two Lakhs Forty Thousand rupees

₹0₹10.80 L
₹

Nine Lakhs Sixty Thousand rupees

%
0.5%20%
years
1 year7 years

Monthly EMI

₹17.07 K

Principal Amount
₹9.60 L
Total Interest
₹2.69 L
Down Payment
₹2.40 L (20%)
Loan Duration
72 months (6 years)
Total Amount Payable
₹12.29 L

Loan Composition

72
Months to pay
Principal Amount
₹9.60 L
78.1%
Interest Amount
₹2.69 L
21.9%
Interest vs Principal Ratio

0.28x

You'll pay 0.28 times the principal as interest

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Payment Schedule

Showing 1 to 12 of 72 entries

Total Principal

₹9.00 L

Total Interest

₹3.13 L

Total Payable

₹12.13 L

Month
EMI
Prin.
Int.
Balance
Dec 2025
₹16.82 K
₹10.44 K
₹6.38 K
₹8.90 L
Jan 2026
₹16.82 K
₹10.51 K
₹6.30 K
₹8.79 L
Feb 2026
₹16.82 K
₹10.59 K
₹6.23 K
₹8.68 L
Mar 2026
₹16.82 K
₹10.66 K
₹6.15 K
₹8.58 L
Apr 2026
₹16.82 K
₹10.74 K
₹6.08 K
₹8.47 L
May 2026
₹16.82 K
₹10.82 K
₹6.00 K
₹8.36 L
Jun 2026
₹16.82 K
₹10.89 K
₹5.92 K
₹8.25 L
Jul 2026
₹16.82 K
₹10.97 K
₹5.85 K
₹8.14 L
Aug 2026
₹16.82 K
₹11.05 K
₹5.77 K
₹8.03 L
Sep 2026
₹16.82 K
₹11.13 K
₹5.69 K
₹7.92 L
Oct 2026
₹16.82 K
₹11.20 K
₹5.61 K
₹7.81 L
Nov 2026
₹16.82 K
₹11.28 K
₹5.53 K
₹7.70 L

Car Loan EMI Calculation Formulas

Mathematical formulas for calculating car loan EMI, interest, and total cost.

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

Example:

₹8,00,000 car loan at 12% annual rate for 5 years

[8,00,000 × 0.01 × (1 + 0.01)^60] / [(1 + 0.01)^60 - 1]
= ₹17,796

Variables:

P - Car loan amount (after down payment)
r - Monthly interest rate (Annual rate ÷ 12)
n - Loan tenure in months

Total Cost = EMI × n + Down Payment

Example:

₹17,796 EMI for 60 months with ₹2,00,000 down payment

17,796 × 60 + 2,00,000
= ₹12,67,760

Variables:

EMI - Monthly EMI amount
n - Loan tenure in months
Down Payment - Initial payment made

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Additional Car Loan Charges to Consider in India

Be aware of these additional costs beyond your monthly EMI for your car loan

Processing & Documentation

Processing fee: 0.5% to 2% of loan amount
Documentation charges: ₹2,000-₹10,000
Verification charges: ₹1,000-₹5,000

Insurance & Registration

Car insurance: 3-6% of vehicle value annually
Registration charges: ₹5,000-₹25,000
Road tax: 8-12% of vehicle value

Penalties & Other Charges

Late payment penalty: 2-3% per month
Foreclosure charges: 2-5% of outstanding amount
Extended warranty: ₹10,000-₹50,000

Smart Car Buying Tips

Expert advice to help you make the best car purchase decision

Financial Planning

1
Down Payment: Aim for 20-25% down payment to reduce EMI burden
2
EMI-to-Income Ratio: Keep car EMI under 15-20% of monthly income
3
Compare Rates: Shop around for the best interest rates from different lenders
4
Total Cost: Consider fuel, maintenance, and insurance costs

Purchase Strategy

1
New vs Used: Consider certified pre-owned cars for better value
2
Loan Tenure: Shorter tenure means higher EMI but lower total interest
3
Pre-approval: Get loan pre-approved for better negotiation power
4
Insurance: Bundle car loan with insurance for potential discounts

Car Loan EMI FAQs

Everything you need to know about car loans, auto financing, and vehicle purchase planning

What is a car loan and how does it differ from personal loans?

A car loan is a secured loan specifically for purchasing vehicles. The car itself serves as collateral, which typically results in lower interest rates compared to personal loans.

Key Features: Secured loan, lower interest rates, longer tenure (up to 7 years), specific vehicle purchase purpose, and faster approval for new cars.

What factors affect my car loan interest rate?

Several factors determine your car loan interest rate:

  • Credit Score: Higher scores (750+) get better rates
  • New vs Used Car: New cars typically get lower rates
  • Loan-to-Value Ratio: Higher down payment = lower rate
  • Income Stability: Salaried vs self-employed applicants
  • Car Brand & Model: Premium brands may get better rates
  • Loan Tenure: Shorter tenure may have lower rates

Pro Tip: Make a higher down payment (20-30%) to get better interest rates and reduce your EMI burden.