Know your monthly payment before you walk into the showroom.
Car loans are typically shorter and carry a slightly higher interest rate than home loans, since the vehicle itself depreciates quickly and lenders price that risk in. This calculator applies the same reducing-balance EMI formula banks use, so you can see your real monthly outgo before you negotiate at the dealership — not after you've already signed the finance paperwork.
Enter the loan amount you actually need to borrow (on-road price minus your down payment), the interest rate quoted by the lender, and the tenure you want, and the calculator instantly shows your EMI, total interest, and a full year-by-year repayment schedule you can download as a PDF.
Most car loans in India run 3 to 7 years. Because a car is a depreciating asset, stretching the tenure to lower your EMI often means you'll still owe more than the car is worth in the middle years of the loan. A larger down payment and a shorter tenure typically save the most money overall, even though the EMI is higher — use the slider to see exactly how much interest a 5-year loan saves compared to a 7-year loan on the same amount.
Also factor in on-road costs beyond the ex-showroom price — registration, insurance, and accessories — since lenders sometimes finance these too, which increases your principal and therefore your EMI.
For example, an ₹8,00,000 car loan at 9.5% annual interest over 7 years comes to an EMI of roughly ₹13,075 a month, with total interest of about ₹2,98,316 — bringing your total repayment to around ₹10,98,316.
$13,075
$298,316
$1,098,316
Principal · 73%
$800,000
Total Interest · 27%
$298,316
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| 1 | $84,519 | $72,383 | $715,481 |
| 2 | $92,908 | $63,994 | $622,573 |
| 3 | $102,129 | $54,774 | $520,444 |
| 4 | $112,265 | $44,637 | $408,179 |
| 5 | $123,407 | $33,495 | $284,773 |
| 6 | $135,655 | $21,248 | $149,118 |
| 7 | $149,118 | $7,784 | $0 |
How much down payment should I make on a car loan?
Most lenders finance 80-90% of the on-road price, so plan for at least a 10-20% down payment. A larger down payment reduces your principal, your EMI, and your total interest, and it also protects you from owing more than the car is worth in the first couple of years.
What is a typical car loan interest rate in India?
Car loan rates commonly range from around 8.5% to 13% per annum depending on the lender, your credit score, whether the car is new or used, and the loan tenure. New-car loans usually carry lower rates than used-car loans.
Is a 5-year or 7-year car loan better?
A 5-year tenure means a higher EMI but noticeably less total interest than a 7-year tenure on the same loan amount and rate. If your monthly budget can absorb the higher EMI, the shorter tenure is almost always the cheaper option over the life of the loan.
Can I prepay or foreclose my car loan early?
Most lenders allow foreclosure after a lock-in period (often 6-12 months), sometimes with a small prepayment penalty on fixed-rate loans. Paying off a car loan early reduces the interest you pay, since interest accrues only on the outstanding balance.
Does my credit score affect my car loan EMI?
Yes. A higher credit score typically qualifies you for a lower interest rate, which directly lowers your EMI and total interest for the same loan amount and tenure.