EMI Calculator 2024

Car Loan EMI Calculator

Car Loan EMI Calculator

Last Updated : March 17, 2023, 4:22 p.m.

A car is much more than just a comfortable travel option as it gives you the freedom to roam around with your friends and taste the roadside snacks. Even though owning a car is a necessity, not everyone is able to pay the whole amount at once. Well, there is always an option to get a car loan as it eases the payment in parts via Equated Monthly Installment (EMI).

Loan Amount
Interest Rate
Monthly Instalment (EMI)
Total Interest Amount
Total Amount (Principal + Interest)
YearPrincipalInterestBalance Amount

The EMI is the amount a loan borrower has to pay to the corresponding bank or NBFC. A loan EMI calculator is easy to use and available online for free. With the help of the calculator, a person can easily know the installments he/she will have to pay and then plan the monthly expenses accordingly. A car loan interest or EMI calculator takes into account the loan amount, tenure, and interest rate to compute the repayment summary.

What is a Car Loan EMI Calculator?

Just like any other EMI, a car loan EMI is the monthly installment that you have to pay on your car loan. There are many calculators for a car loan like Car loan EMI Calculator SBI, Car Loan EMI Calculator HDFC, Car Loan EMI Calculator ICICI , etc. that can be used to calculate the installments for your auto loan.

The loan EMI calculator is the tool that takes into account the following details:

  • Loan amount
  • Tenure
  • Interest rate

Based on the above information, you can know the EMI, Total interest outgo, and total amount of your loan. For a better understanding, let us take an example.

For instance, Raghav is planning to take a car loan of ₹2,00,000 the interest rate of 10.75% per annum and the tenure period is 7 years. The details of his loan are as follows –

Table Showing EMI, Interest Outgo, and Total Repayment Amount

Loan AmountInterest RateTenureMonthly InstalmentTotal Interest AmountTotal Amount
₹ 2,00,00010.75%1₹ 17,653₹ 11,836₹ 2,11,836
₹ 2,00,00010.75%2₹ 9298₹ 23,161₹ 2,23,161
₹ 2,00,00010.75%3₹ 6524₹ 34,867₹ 2,34,867
₹ 2,00,00010.75%4₹ 5145₹ 46,953₹ 2,46,953
₹ 2,00,00010.75%5₹ 4324₹ 59,415₹ 2,59,415
₹ 2,00,00010.75%6₹ 3781₹ 72,250₹ 2,72,250
₹ 2,00,00010.75%7₹ 3398₹ 85,453₹ 2,85,453

EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

YearPrincipalInterestBalance Amount
1₹ 20,257₹ 20,521₹ 1,79,742
2₹ 22,546₹ 18,233₹ 1,57,195
3₹ 25,092₹ 15,686₹ 1,32,102
4₹ 27,927₹ 12,852₹ 1,04,175
5₹ 31,082₹ 9697₹ 73,093
6₹ 34,592₹ 6186₹ 38,500
7₹ 38,530₹ 2279₹ 0

Things you must know about Car Loan EMI Calculator

An interest calculator is helpful in terms of planning the monthly expenses. Once you have calculated the installments, you get the idea about a lot of things and some of them are:

  • It makes the calculation in a few seconds
  • The calculation takes into account the basic loan details like the loan amount, interest rates, and tenure. Based on these details, the calculator not only tell the monthly installment but also show the amortization schedule indicating the interest and principal amount payable over the years
  • It will provide the loan amortization schedule, timelines of the loan repayment and the total interest outgo.
  • It helps you know the loan affordability and plan your monthly budget to make your loan repayment smoother.
  • With the help of the calculator, you can keep a check on the effect of tenure and interest rate on the installments. Doing so will help you make the right decision.

Parameters on which EMI of a Car Loan depends

Just like any other loan, the monthly installment on a car loan is also dependent on some factors. These include the interest rate, the loan amount and tenure. Let’s read the effect of these in detail.

  • Interest rate – The interest rate is the first thing that a borrower would want to know. The reason being it dictates the amount of monthly installment that a borrower has to pay from his/her pocket.
  • Loan amount – The second thing that decides the installment amount is the loan amount. It is important to avoid taking any loan wherein the EMI will be more than the 50% of your monthly savings. If you follow this method, you can repay the loan smoothly.
  • Tenure – The loan tenure is something that most don’t pay much attention to. As a result, they choose a very long loan tenure just to lower down the EMI. But in return, they end up paying more interest. The maximum tenure in the case of new car loan is 7 years, while the same for used car loan is 5 years.

How does Car Loan EMI Calculator work?

You can understand the function of an EMI calculator easily. The calculator computes the monthly installment on the basis of two calculators wherein the first calculator is used to calculate the monthly interest rate and the second one is to used to calculate the EMI. The mechanism of these two calculators is as follows:

  • Monthly Interest Calculator – The first formula is used to calculate the monthly interest as the offered rates are on annual basis. So, to get a clear picture of how much payment you will have to make, you should convert the rate into the monthly one. The calculation is simple, all you have to do is to divide the annual rate by 12. For example, the annual rate offered is 10.75%, the monthly interest would be 10.75%/12=0.89% per month.
  • EMI Calculation -The formula used to calculate the monthly installments of the loan is as follows:

E = P . r . (1+r)^n/((1+r)^n – 1)


E= EMI (Equated Monthly Installment)

P= Principal Loan Amount

r= Monthly Interest Rate

n= Number of Monthly Installments

Features & Benefits of Car Loan EMI Calculator

A car loan interest calculator is the tool that gives the opportunity to check all the payments in advance. By doing so, you not only find it easier to make the payments but also bring in some discipline to your financial routine.

  • Accurate results – The most important advantage of the using an online interest calculator or the loan calculator is that it gives the accurate results, unlike manual calculation where there are chances of committing mistakes.
  • Quick – If you are planning to take a loan but have no time to do the manual calculation, online loan calculators are the best. Hence, with the help of the calculator, you can get results instantly.
  • Comparison facility – There are times when you will not be sure if you can manage a particular loan amount or not, you then should check the present loan details and take a final decision. Yes, in case the resultant EMIs are out of your budget, you always have the option to change your mind before applying for a car loan.
  • Flexible adjustable – Other than being free, a loan EMI calculator can be used as many times as you want. It is good to do multiple calculations when you want the lowest interest rate available in the market and the present offer being not so satisfying. So, make the best out of the calculator and choose the affordable loan.
  • More than EMI – There are many online loan calculators that provide a graphic representation of the car loan and amortization table. In a graphical representation, you get the gradual payment details over a period of time.
  • Budget Loan facility – It doesn’t matter which loan a person is applying for, he/she will always want to have lower interest rates so that the loan repayment is smoother. Also, it is better to choose the loan amount as per your repayment capacity. So, the loan calculator gives you the option to finalize the loan as per your budget.
  • Accounted Processing Fee – Generally, the loan calculator does not include any processing fee charged on your loan. But, there are some calculators that consider the processing fee along with the interest rate and give you the final result.

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