Car Loan EMI Calculator
Calculate your car loan EMI, total interest and full amortization schedule instantly with this online calculator for India.
How is Car Loan EMI Calculated?
A car loan EMI is calculated the same way as any reducing-balance loan: a fixed monthly payment that covers interest on the outstanding balance plus a portion of the principal, structured so the loan is fully repaid by the end of its tenure.
EMI = [P × R × (1 + R)N] ÷ [(1 + R)N − 1]
- P — Principal loan amount (on-road price minus down payment)
- R — Monthly interest rate (annual interest rate ÷ 12 ÷ 100)
- N — Loan tenure in months
Car loans are secured against the vehicle, so they usually carry lower interest rates than personal loans but shorter tenures than home loans. Use the calculator above to see your exact EMI, the full repayment schedule, and how prepayments can reduce your total interest outgo.
Frequently Asked Questions
How much down payment should I make on a car loan?
Most lenders finance 80–90% of the on-road price, so a down payment of 10–20% is typical. A larger down payment lowers your EMI and total interest outgo.
Can I prepay or foreclose a car loan?
Yes, most lenders allow part-prepayment or full foreclosure, sometimes with a small charge after a lock-in period. Every prepayment reduces your outstanding principal, lowering the interest charged in every subsequent month.