HomeLoans & EMI
Car loan EMI calculator
EMI for a car loan over 3 to 7 years.
Quick answer
A car loan EMI is the fixed monthly payment that repays the loan you take to buy a car. Formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). A ₹8,00,000 car loan at 9.5% for 5 years is about ₹16,801 a month.
Read the guide: How to calculate car loan EMI and the real cost
Monthly EMI
₹16,801
- Total interest
- ₹2,08,089
- Total payment
- ₹10,08,089
- Interest share of what you pay
- 20.6%
- Principal
- Interest
Year-by-year table
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹2,01,618 | ₹1,31,234 | ₹70,383 | ₹6,68,766 |
| 2 | ₹2,01,618 | ₹1,44,259 | ₹57,359 | ₹5,24,506 |
| 3 | ₹2,01,618 | ₹1,58,576 | ₹43,041 | ₹3,65,930 |
| 4 | ₹2,01,618 | ₹1,74,315 | ₹27,303 | ₹1,91,615 |
| 5 | ₹2,01,618 | ₹1,91,615 | ₹10,003 | ₹0 |
How is a car loan EMI calculated?
Enter only the amount you borrow, which is the car price minus your down payment. A bigger down payment lowers both the EMI and the interest.
Car loans are short, so the interest share is smaller than on a home loan, but the rate is usually higher.
Compare tenures: 3 years costs more each month and far less interest than 7 years.
What is the formula for a car loan EMI?
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = loan amount, r = interest rate per year ÷ 12 ÷ 100, n = number of monthly instalments
Can you show a worked example of a car loan EMI?
A car loan of ₹8,00,000 at 9.5% for 5 years (60 months): EMI = ₹16,801. You repay ₹10,08,089 in total, so the loan costs ₹2,08,089 in interest.
What is the EMI on an ₹8 lakh car loan?
Monthly EMI on a car loan of ₹8,00,000.
| Interest rate | 3 years | 4 years | 5 years | 7 years |
|---|---|---|---|---|
| 8% | ₹25,069 | ₹19,530 | ₹16,221 | ₹12,469 |
| 9% | ₹25,440 | ₹19,908 | ₹16,607 | ₹12,871 |
| 10% | ₹25,814 | ₹20,290 | ₹16,998 | ₹13,281 |
| 11% | ₹26,191 | ₹20,676 | ₹17,394 | ₹13,698 |
| 12% | ₹26,571 | ₹21,067 | ₹17,796 | ₹14,122 |
Common questions
Should I take a 5-year or 7-year car loan?
The 7-year EMI is lower but the total interest is much higher, and the car loses value faster than you repay. Choose the shortest tenure you can afford.
Does the down payment reduce the EMI?
Yes. Subtract it from the car price before entering the loan amount.
Is the on-road price what I should borrow against?
Lenders often finance a share of the ex-showroom price. Enter the amount the lender actually offers.
Can I close a car loan early?
Usually yes, sometimes with a foreclosure charge. Check your loan agreement, then use the prepayment calculator to see the saving.