Plan your car loan in seconds. Enter the on-road price, down payment, loan tenure and interest rate. The calculator works out the monthly EMI, total interest, processing fee and full payback amount - including a year-wise amortization schedule so you know how much principal vs interest you pay every year.
Ex-showroom + RTO + insurance + extras.
Banks finance up to 85-90% of on-road price.
Indian car loans are 8.5%-11% p.a.
Most banks charge 0.5%-1% of loan amount.
Monthly EMI
₹20,758
Loan amount
₹10,00,000
Total interest
₹2,45,501
Down payment
₹2,00,000
Processing fee
₹5,000
Total cost of ownership
₹14,50,501
Down payment + EMIs + processing fee
Principal vs. Interest
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹1,65,830 | ₹83,270 | ₹8,34,170 |
| Year 2 | ₹1,81,386 | ₹67,714 | ₹6,52,784 |
| Year 3 | ₹1,98,401 | ₹50,699 | ₹4,54,383 |
| Year 4 | ₹2,17,013 | ₹32,088 | ₹2,37,370 |
| Year 5 | ₹2,37,370 | ₹11,730 | ₹0 |
For illustration only. Banks may charge GST on processing fees, documentation charges and insurance bundling. Final EMI sanctioned depends on credit score, tenure and bank-specific terms. Always verify the offer letter.
Monthly EMI is 20,758 rupees.
Buying a car is one of the largest discretionary purchases an Indian family makes, second only to a home. Even an entry-level hatchback like Maruti Swift or Hyundai Grand i10 comes to ₹7-9 lakh on-road; mid-segment sedans and SUVs like Hyundai Verna, Maruti Brezza or Hyundai Creta cost ₹12-18 lakh on-road; premium SUVs and luxury cars easily cross ₹25 lakh. For most buyers, financing through a car loan is essential - and getting the EMI math right makes the difference between a manageable monthly outflow and a stretched budget for the next 5-7 years.
This calculator helps you plan the full cost picture: on-road price (ex-showroom + RTO road tax + insurance + accessories), down payment (banks finance 85-90% maximum), interest rate (8.5%-11% from banks like HDFC, SBI, ICICI, Axis; 10-15% from NBFCs like Mahindra Finance and Tata Capital; higher for used cars), tenure (1-7 years; longer reduces EMI but balloons total interest), and processing fee (0.5-1% one-time). The output is the monthly EMI plus the year-wise amortisation schedule so you understand the principal vs interest split - useful for tax purposes (if you're self-employed and can claim business interest) and for prepayment planning.
Enter the on-road price of the car (ex-showroom + RTO + insurance + extras).
Enter your down payment. The remaining amount becomes the loan principal.
Set the interest rate (Indian car loans are usually 8.5%-11% p.a.).
Choose the loan tenure (1-7 years; banks rarely allow longer).
Enter the processing fee - most banks charge 0.5% to 1% of the loan amount.
Read the EMI, total interest and total payback. Use the schedule to see year-wise outflow.
A car loan is a reducing-balance EMI. Each instalment is split into interest on the outstanding principal plus a portion of the principal itself. Early in the tenure most of the EMI is interest; later it shifts to principal. The standard EMI formula is used. The processing fee is added upfront to total cost since it is non-refundable. We do not include GST on processing fee or insurance - those vary by lender.
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
The standard reducing-balance EMI formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is monthly interest rate (annual / 12 / 100), and n is total months. The math is identical to home loan EMI calculation. This produces a fixed monthly payment; each EMI is split between interest on the outstanding principal and a portion of principal repayment.
Amortisation pattern: early in the tenure, most of the EMI goes to interest because the outstanding principal is high. As principal reduces month by month, interest component falls and principal repayment rises. By the end of tenure, almost the entire EMI is principal. This is why prepayment in the first 2-3 years saves dramatically more interest than prepayment in year 5-6.
Total cost components: Principal = (on-road price − down payment). Total interest = (EMI × number of months) − principal. Total payback = Principal + interest. Plus one-time processing fee (~₹3,000-₹10,000). Plus optional credit life insurance (₹3,000-₹15,000 added to loan). Some banks charge an additional 'documentation fee' of ₹500-₹2,000. Be sure to add these to the comparison when shortlisting lenders.
Principal: ₹12 lakh. EMI: ₹24,910. Total interest over 5 years: ₹2.95 lakh. Total payback: ₹14.95 lakh. Processing fee at 1%: ₹12,000. Grand total cost of car: ₹15 lakh + ₹3 lakh + ₹12,000 = ₹18.07 lakh.
Principal: ₹6 lakh. EMI: ₹12,597. Total interest: ₹1.56 lakh. Total payback: ₹7.56 lakh. Affordable for ₹50,000+ monthly income (EMI ratio < 25%).
Principal: ₹20 lakh. EMI: ₹32,945. Total interest: ₹7.67 lakh. Total payback: ₹27.67 lakh. Longer tenure lowers EMI but interest is 38% of principal - high cost.
Banks finance up to 85-90% of the on-road price. A larger down payment lowers your EMI and total interest. A common rule is 20-25% down - anything more and you have idle capital.
8.5% to 11% per annum at most banks (HDFC, SBI, ICICI, Axis). Used-car loans are higher (12-15%). NBFC car loans are typically 1-2% higher than banks.
Not for salaried buyers. Self-employed individuals or businesses that use the car for work can deduct the interest as a business expense. EVs purchased on loan get an additional ₹1.5 lakh deduction under Section 80EEB.
Ex-showroom price + RTO road tax (5-15% of ex-showroom) + insurance (~3% of ex-showroom for first year) + handling charges + extended warranty (optional).
If your loan rate is higher than your post-tax investment return, yes. Most banks now do not charge a prepayment penalty on floating-rate loans for individuals.
Banks usually cap car loans at 7 years. A longer tenure lowers EMI but raises total interest sharply. A 5-year loan vs 7-year loan saves ~30% in interest.
Owning a vehicle in India means juggling EMI, fuel cost, depreciation, charging cost (for EVs), maintenance and trip cost. These numbers are interconnected - a longer commute means more fuel, faster depreciation, and bigger interest payments. Rather than treat them in isolation, the vehicle calculators help you see the full stack before you sign on the dotted line.
Pair this calculator with the EMI, depreciation, fuel cost and EV charging calculators to compute the realistic monthly cost of ownership. For depreciation we follow the IRDAI standard schedule used by Indian insurers for IDV (Insured Declared Value); for EV charging we model losses, charger type and time-of-use tariffs.
The Car EMI Calculator is part of the Vehicle suite on Online Calculator Tools, alongside 6 related calculators. All tools share the same UI patterns, the same privacy-first rendering (nothing is sent to a server), and the same commitment to showing the formula and assumptions behind every result.
