Car Loan EMI Calculator: New & Used Cars

Work out the EMI on a car loan and see how the down payment and tenure change what the car really costs.

Car Loan EMI Calculator

Work out the monthly EMI, total interest and full repayment schedule for a home, car or personal loan.

Monthly EMI₹16,607

Principal amount: ₹8,00,000₹8 lakh
Total interest: ₹1,96,401₹1.96 lakh
Total amount payable: ₹9,96,401₹9.96 lakh

Results are estimates for educational purposes only and are not financial, tax or legal advice. For more details, do consult a lawyer or a subject-matter expert.

Principal vs interest

PrincipalInterest

View chart data as a table

Principal vs interest
Principal	₹8,00,000
Interest	₹1,96,401

Year-wise amortisation schedule

Tap a year to see its monthly breakdown. Amounts in the schedule are shown to the paisa.

Principal	Interest	Total paid	Balance
₹1,32,664.02	₹66,616.19	₹1,99,280.21	₹6,67,335.98
₹1,45,108.82	₹54,171.39	₹1,99,280.21	₹5,22,227.16
₹1,58,721.03	₹40,559.18	₹1,99,280.21	₹3,63,506.14
₹1,73,610.15	₹25,670.06	₹1,99,280.21	₹1,89,895.98
₹1,89,895.98	₹9,384.23	₹1,99,280.21	₹0.00

Explain this result

You borrow ₹8,00,000 at 9.00% a year for 5 years. Banks charge interest monthly, so the monthly rate is 9.00% ÷ 12.

The EMI formula is EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly rate and n the number of months (60).

Your EMI stays the same every month, but its split changes: early EMIs are mostly interest, later ones mostly principal. Over the full tenure you pay ₹1,96,401 as interest – that is 19.71% of everything you repay (₹9,96,401).

Tip: a shorter tenure or part-prepayments sharply reduce the total interest.

Frequently asked questions

How is EMI calculated?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the annual interest rate divided by 12 (as a decimal) and n is the tenure in months. For ₹10 lakh at 9% for 20 years the EMI is about ₹8,997.

Does a longer tenure reduce my EMI?

Yes, but you pay much more interest in total. Choose the shortest tenure whose EMI fits comfortably within your budget.

Is the EMI shown here exactly what my bank will charge?

It is a close estimate. Banks may round differently, add processing fees or insurance, or use a floating rate that changes over time.

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<p style="font-size:13px"><a href="https://sumsense.in/calculators/emi-calculator/">EMI Calculator</a> – Free calculator by SumSense</p>
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Worked example: ₹8 lakh car loan

Borrowing ₹8 lakh at 9% for 5 years gives an EMI of about ₹16,607 and total interest of about ₹1.96 lakh.

How to use it

Enter the on-road price minus your down payment.
Enter the rate quoted by the dealer’s financier and by your own bank – compare both.
Keep the tenure short: cars lose value quickly, and a 7-year loan can outlast your interest in the car.

Car loan tips

Dealer “0% interest” offers often hide the cost in a higher price or processing fee. Compare the total amount paid.
Used-car loans usually carry higher rates than new-car loans.
A 20% down payment keeps you from owing more than the car is worth.

Next steps

Use the EMI calculator for other loans, or the prepayment calculator if you expect a bonus.