Car Loan EMI Calculator
Calculate car loan EMI for new and used cars. Compare SBI, HDFC, ICICI car loan rates from 8.85%. See total interest, year-wise schedule and how down payment reduces EMI.
Car Loan EMI Calculator
Results update instantly
Most new car loans: ₹3L–₹20L · Used cars: ₹1L–₹10L
SBI car loans from 8.85% · HDFC from 9.0% · New cars get lower rates than used
These numbers are a solid starting point. Your actual EMI may vary slightly by lender — always confirm before signing.
| Year | EMI Paid | Principal Paid | Interest Paid | Interest % | Balance |
|---|
On a ₹8L car loan at 9% for 5 years, you pay ₹1.99L in interest — nearly 25% of the car price. A 2% rate difference saves ₹15,000 over the tenure. Always negotiate your rate before accepting the dealer's finance offer.
What is a Car Loan EMI Calculator?
A car loan EMI calculator helps you calculate your exact monthly payment before you walk into a dealership. EMI stands for Equated Monthly Instalment — the fixed amount you repay every month covering both principal and interest. Whether you're buying a hatchback, sedan, or SUV, knowing your EMI upfront helps you budget confidently and negotiate better with the bank.
ThriftRupee's free car loan EMI calculator gives you instant results — enter your loan amount, the interest rate quoted by your bank, and the repayment tenure. The calculator shows your monthly EMI, total interest outgo, and a year-by-year amortization schedule.
How to use this calculator
Use the preset chips for common car loan amounts (₹3L to ₹30L) or type your exact figure. Enter your bank's quoted interest rate — SBI currently starts at 8.85%, HDFC at 9.0% for new cars. Select tenure between 1 and 7 years. Results update instantly as you move the sliders. The donut chart shows how much of your total repayment is interest versus principal.
Car loan EMI formula
Car loans in India use the reducing balance method, the same formula as home loans:
P = Loan amount · r = Monthly rate (annual rate ÷ 12 ÷ 100) · n = Tenure in months
For an ₹8 lakh car loan at 9% for 5 years: r = 9 ÷ 1200 = 0.0075, n = 60 months. EMI = ₹16,599/month.
Key factors that affect your car loan EMI
Loan amount: Your EMI is directly proportional to the loan amount. A larger down payment reduces the loan principal and significantly lowers both EMI and total interest. On a ₹10L car, paying ₹2L down instead of ₹1L saves approximately ₹1,650/month in EMI at 9%.
Interest rate: New car loans attract lower rates (8.5–9.5%) than used car loans (10–14%) because the collateral value is higher and more predictable. Your CIBIL score also matters — a score above 750 can get you 0.5% lower than the standard rate, saving ₹8,000–₹12,000 over a 5-year loan.
Loan tenure: A longer tenure reduces your monthly EMI but increases total interest paid. A 7-year loan on ₹8L at 9% costs ₹11,800/month EMI but ₹2.9L in total interest vs ₹1.96L for a 5-year loan.
ThriftRupee tips for your car loan
Tip 1: Avoid 0% finance schemes. Dealer 0% EMI offers usually include a higher on-road price, documentation charges, or mandatory accessories that offset the "zero interest." Always calculate the total cost — not just the EMI — before deciding.
Tip 2: Bank loan vs dealer finance. Dealer-arranged loans are convenient but often 1–2% higher than going directly to your bank. For a ₹8L loan, that 1% difference costs ₹22,000 extra over 5 years.
Tip 3: Keep tenure short. A 5-year car loan is the sweet spot for most buyers — manageable EMI without excessive interest. Avoid 7-year loans unless absolutely necessary since the car's resale value drops faster than your loan outstanding.