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Car Loan EMI Calculator
Yearly Payment Breakdown
Amortization Schedule (Monthly)
| Month | EMI (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|---|
| 1 | 15,840.96 | 11,174.29 | 4,666.67 | 7,88,825.71 |
| 2 | 15,840.96 | 11,239.48 | 4,601.48 | 7,77,586.23 |
| 3 | 15,840.96 | 11,305.04 | 4,535.92 | 7,66,281.19 |
| 4 | 15,840.96 | 11,370.99 | 4,469.97 | 7,54,910.2 |
| 5 | 15,840.96 | 11,437.32 | 4,403.64 | 7,43,472.89 |
| 6 | 15,840.96 | 11,504.03 | 4,336.93 | 7,31,968.85 |
| 7 | 15,840.96 | 11,571.14 | 4,269.82 | 7,20,397.71 |
| 8 | 15,840.96 | 11,638.64 | 4,202.32 | 7,08,759.07 |
| 9 | 15,840.96 | 11,706.53 | 4,134.43 | 6,97,052.54 |
| 10 | 15,840.96 | 11,774.82 | 4,066.14 | 6,85,277.72 |
| 11 | 15,840.96 | 11,843.51 | 3,997.45 | 6,73,434.21 |
| 12 | 15,840.96 | 11,912.59 | 3,928.37 | 6,61,521.62 |
How Car Loan EMI Works?
EMI (Equated Monthly Installment) is the fixed payment you make every month to repay your car loan. It consists of both principal and interest components. This calculator is useful for first-time car buyers comparing bank and NBFC offers, or anyone checking how a different down payment, interest rate, or tenure changes their monthly outgo.
- In the initial months, the interest component is higher, and the principal component is lower.
- As you keep paying EMIs, the principal component increases, and the interest component decreases.
EMI Formula Used
EMI = [P × R × (1 + R)N] / [(1 + R)N − 1]
The charts and table above help you visualize your repayment journey, showing how much you pay towards interest and principal each year and month.
Car Loan EMI Calculator FAQs
How is car loan EMI calculated?
Car loan EMI is calculated using the formula EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the loan amount, R is the monthly interest rate, and N is the tenure in months. This calculator applies the same formula used by Indian banks and NBFCs.
What is a typical interest rate for car loans in India?
Car loan interest rates in India typically range from 7% to 12% per annum, depending on the lender, your credit score, the car's on-road price, and whether it is a new or used vehicle. New car loans generally attract lower rates than used car loans.
Does a longer car loan tenure reduce my EMI?
Yes, a longer tenure spreads the principal over more months, lowering the monthly EMI. However, it also increases the total interest paid over the life of the loan, so a shorter tenure is usually cheaper overall if you can afford the higher EMI.
Does the down payment affect my car loan EMI?
Yes, a higher down payment reduces the principal you need to borrow, which directly lowers your EMI and the total interest payable. Most lenders finance 80-90% of the car's on-road price, requiring the remainder as a down payment.
Can I prepay or foreclose my car loan?
Most lenders allow part-prepayment or full foreclosure of a car loan, often after a minimum lock-in period of 6-12 months, though some may charge a prepayment penalty of 2-5% on the outstanding principal. Paying off the loan early reduces total interest cost.
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