Car Loan Calculator
Calculate EMI for your car loan and plan your purchase.
Breakdown
Monthly EMI
₹16,607
Total Interest
₹1,96,401
Total Payment
₹9,96,401
Schedule
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | ₹1,32,664 | ₹66,616 | ₹6,67,336 |
| 2 | ₹1,45,109 | ₹54,171 | ₹5,22,227 |
| 3 | ₹1,58,721 | ₹40,559 | ₹3,63,506 |
| 4 | ₹1,73,610 | ₹25,670 | ₹1,89,896 |
| 5 | ₹1,89,896 | ₹9,384 | ₹0 |
What is Car Loan?
A Car Loan is a secured loan provided by banks or financial institutions to help individuals purchase a car. The vehicle itself acts as collateral for the loan, which is repaid through fixed monthly EMIs over a chosen tenure.
Car loans generally follow a reducing balance interest calculation, meaning interest is charged only on the remaining outstanding principal.
How Car Loan Works
Each EMI includes both principal repayment and interest. As you continue paying EMIs, the loan balance decreases, and interest for the next month is calculated on the reduced principal amount.
Vehicle as Collateral
The car serves as security for the loan
Reducing Balance
Interest charged only on outstanding principal
Fixed EMI
Same monthly payment throughout the loan tenure
36–84 Month Tenure
Flexible tenure ranging from 3 to 7 years
Calculation Method
Formula:
Where:
- P = Loan principal (car price minus down payment)
- i = Monthly interest rate
- N = Total number of monthly installments
Assumptions:
- ✓ Reducing balance interest
- ✓ Fixed interest rate
- ✓ Monthly EMI payments
Key Benefits
Secured Loan
Lower interest rates due to vehicle collateral
Fixed Payments
Predictable monthly EMIs for easy budgeting
Flexible Tenure
Choose tenure that fits your financial capacity
Ownership Benefit
Drive the car while paying for it over time
Important Disclaimer
This information is for educational purposes only and not financial advice. Interest rates, loan limits, processing fees, and repayment conditions vary across banks and financial institutions.
Always review the official loan terms and conditions before applying for a car loan.