Car Loan Calculator — Monthly Payment & True Cost

Enter Parameters

Adjust sliders or type values directly

Car Price (On-Road)

Down Payment

Interest Rate (p.a.)

Loan Term

years

Real-time Calculation Ready

Adjust parameters to see instant results

AI Summary & Key Formula

Car Loan Calculator Quick Reference

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Quick Answer

A car loan calculator finds the monthly EMI on the car price minus your down payment, using EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), and adds the down payment to show the total cost of the car. For example, an ₹8,00,000 car with ₹2,00,000 down, financed at 9% for 5 years, costs ₹12,455 a month and ₹1,47,301 in interest, for a total outlay of ₹9,47,301. Use it to compare down payments and terms of 1–8 years; it assumes a fixed rate and excludes insurance, registration and dealer charges.

How This Calculation Works

Values calculate dynamically in real-time as you enter figures or adjust sliders.
The equation on the right is exactly what the calculator runs — check any result by hand.

Core Equation

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
Where:
  P = Loan amount = Car price − Down payment
  r = Monthly interest rate = Annual rate / 12 / 100
  n = Tenure in months

Total cost of ownership = Down payment + (EMI × n)

How to Use the Car Loan Calculator

Quick 3-step guide for accurate and fast calculations

STEP 01

Enter your car price (on-road)

In the Car Loan Calculator, fill in Car Price (On-Road), Down Payment, Interest Rate (p.a.) and Loan Term.

STEP 02

Read your monthly car emi

The Car Loan Calculator instantly shows Monthly Car EMI, Financed Amount, Total Interest Cost and Total On-Road Cost (inc. Interest), updating as you type.

STEP 03

Compare scenarios

Change Down Payment to see how it affects Monthly Car EMI, then check the formula below to verify the math.

Specific Instructions:

Enter the car's on-road price, your down payment, the loan interest rate and the loan term in years (1–8). The calculator shows the financed amount, monthly EMI, total interest cost and the total cost of the car including the down payment and all EMIs. Adjust the inputs to compare different deals or down payment scenarios.

Car Loan Calculator Formula

The Car Loan Calculator uses the following formula, calculated in your browser as you change the inputs:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1) Where: P = Loan amount = Car price − Down payment r = Monthly interest rate = Annual rate / 12 / 100 n = Tenure in months Total cost of ownership = Down payment + (EMI × n)

Sources:

Worked Example: Car Loan Calculator

Calculations run in your browser — your inputs are never stored on our servers.Formula sources & methodology

Frequently Asked Questions — Car Loan Calculator

What is a good car loan interest rate in India?

For new cars, interest rates range from 7.5% to 10% p.a. at major banks (SBI, HDFC, ICICI) for customers with good credit scores (750+). Used car loans are higher, typically 12–16% p.a. Interest rates also vary by vehicle type — EVs often get preferential rates under green loan schemes.

How much down payment should I make on a car loan?

A 20–25% down payment is generally recommended for car loans. A higher down payment reduces the loan amount, lowers your EMI, and reduces total interest paid. Putting down less than 15–20% may result in being 'upside down' on the loan (owing more than the car's depreciating market value) in the early years.

Is it better to take a shorter or longer car loan tenure?

A shorter tenure means higher monthly payments but much less total interest. On a ₹6,00,000 loan at 9%, a 3-year term costs ₹19,080 a month and ₹86,874 in interest, while a 7-year term drops the EMI to ₹9,653 but raises interest to ₹2,10,890. Because a car loses value every year, a long loan can leave you owing more than the car is worth, so choose the shortest tenure your budget comfortably allows.