Car Loan EMI Calculator

Plan your car loan with confidence. Calculate your monthly EMI, total interest, and see a full amortization schedule.

Loan Details

₹ 10,00,000
9.0 %
5 Years

Monthly EMI

₹ 0

Total Interest

₹ 0

Total Payable

₹ 0

Amortization Schedule (Year-wise)

Year Principal Paid Interest Paid Total Payment Balance

Understanding Your Car Loan EMI and Planning

Our Car Loan EMI Calculator helps you quickly estimate your monthly loan payments, total interest, and plan your car purchase effectively.

What is EMI?

EMI stands for Equated Monthly Installment. It is the fixed payment amount that a borrower pays to a lender at a specified date each month. This payment covers both the principal amount and the interest accrued on the loan.

Understanding your Car Loan EMI is crucial for budgeting and financial planning, as it represents a significant recurring expense for the duration of your car loan tenure.

How Car Loan EMI is Calculated

The EMI calculation depends on three main factors:

  1. Principal Loan Amount (P)
    The total amount of money borrowed for the car.
  2. Interest Rate (R)
    The rate at which interest is charged on the principal, usually per annum. For EMI calculation, this is converted to a monthly rate.
  3. Loan Tenure (N)
    The total period in months for which the car loan is taken.

The formula used is:

$$EMI = P \times R \times \frac{(1 + R)^N}{((1 + R)^N - 1)}$$

Where:

  • $P$ = Principal Car Loan Amount
  • $R$ = Monthly Interest Rate (Annual Rate / 12 / 100)
  • $N$ = Loan Tenure in Months (Years * 12)

Understanding the Amortization Schedule

An amortization schedule provides a detailed breakdown of each EMI payment, showing how much goes towards the principal and how much towards the interest over the car loan's lifetime. In the initial years, a larger portion of your EMI goes towards interest, while in later years, more goes towards repaying the principal.

This schedule helps you visualize your car loan repayment progress and understand the impact of interest on your total payable amount.

Frequently Asked Questions

Your car loan EMI is primarily affected by the principal loan amount, the interest rate offered by the lender, and the loan tenure you choose. A higher loan amount or interest rate will increase your EMI, while a longer tenure will decrease it (but increase total interest).

While some lenders may offer 100% financing for car loans, it's less common. Generally, a down payment is required, and making a larger down payment can reduce your principal loan amount, thereby lowering your EMI and total interest burden.

A longer car loan tenure results in a lower monthly EMI but significantly increases the total interest paid over the life of the loan. Conversely, a shorter tenure leads to higher EMIs but a substantial reduction in the total interest, making the car more affordable in the long run.