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Car Loan EMI Calculator

Calculate your car loan EMI after down payment, total interest, and total cost — see how a bigger down payment shrinks your EMI and interest burden.

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9%
60M
Typical Rates: SBI 8.65% | HDFC 8.75% | ICICI 8.85% | Used cars 12–20%

📊 Your EMI Results

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Disclaimer: Results provided by this calculator are for educational and estimation purposes only. They do not constitute formal financial, investment, or tax advice. Actual returns, rates, and tax treatment depend on your specific circumstances and prevailing regulations. Consult a certified financial advisor or chartered accountant before making financial decisions.

How Car Loan EMI Is Calculated

Your car loan principal is the car's price minus your down payment — the larger your down payment, the smaller the loan (and interest) you're financing. Indian car loan rates typically run 9-12% for new cars, higher for used vehicles, with tenures usually capped at 5-7 years since cars depreciate faster than the loan amortizes in later years.

Worked Example

A ₹10,00,000 car with a ₹2,00,000 down payment (20%) leaves a loan principal of ₹8,00,000. At 9.5% p.a. for 5 years, EMI = ₹16,801/month, total interest = ₹2,08,089 (about 20.8% of the car's price). Increasing the down payment to 30% would drop the principal to ₹7,00,000 and meaningfully reduce both EMI and total interest.

Frequently Asked Questions

Aim for at least 20% if possible — it lowers your EMI, reduces total interest, and protects you from being "underwater" (owing more than the car's resale value) in the early years, since cars depreciate fastest right after purchase. A larger down payment is one of the highest-leverage ways to reduce a car loan's total cost.
A shorter tenure means higher EMI but significantly less total interest, since you're paying down principal faster. A 7-year tenure lowers your monthly payment but you'll likely still be paying off the loan well after the car has lost much of its value — most lenders and financial planners recommend capping car loan tenure at 5 years.
Yes, used car loans typically carry rates 2-4 percentage points higher than new car loans, and shorter maximum tenures, since used vehicles depreciate faster and carry more valuation uncertainty for the lender.
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