Car Loan Calculator
Calculate your car loan EMI, total cost, and interest paid based on vehicle price, down payment, and loan terms.
Typical car loan rates: 8.5% – 15% p.a. Tenure: 1–7 years.
Monthly EMI
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Loan Amount
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Total Interest
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Total Cost
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What is Car Loan Calculator?
A car loan calculator estimates your monthly EMI for financing a vehicle purchase, factoring in the vehicle price, down payment, annual interest rate, and loan tenure. Car loans in India typically range from 8.5–15% p.a. with tenures of 1–7 years. Knowing your EMI in advance helps you plan your budget and decide the right balance between down payment and loan amount.
How to use
- 1 Enter the on-road price of the vehicle.
- 2 Enter the down payment you plan to make (a higher down payment reduces your loan and interest cost).
- 3 Input the annual interest rate offered by your bank or dealer's financing partner.
- 4 Select the loan tenure from 1 to 7 years.
- 5 Your monthly EMI, loan amount, total interest, and total vehicle cost are shown immediately.
Formula
Example calculation
An ₹8,00,000 car with a ₹2,00,000 down payment leaves a ₹6,00,000 loan. At 10% annual interest over 5 years, the monthly EMI is approximately ₹12,748. Total repayment is ₹7,64,880 — meaning ₹1,64,880 is paid in interest, adding about 27% to the loan cost.
Frequently asked questions
How much down payment should I make on a car loan?
A down payment of 20–30% of the vehicle price is generally recommended. A higher down payment lowers your EMI, reduces total interest, and makes loan approval easier. Avoid zero-down-payment offers unless necessary, as they maximise interest costs.
Is a car loan from a bank or dealer financing better?
Banks typically offer lower interest rates than dealership financing. However, dealer-arranged loans from NBFCs may offer faster processing and promotional zero-interest schemes on select models. Always compare the effective annual rate (APR).
Can I get a car loan for a used vehicle?
Yes. Most banks and NBFCs offer used car loans, though at higher interest rates (typically 2–4% above new car loan rates) and shorter maximum tenures (3–5 years). The vehicle age and condition affect eligibility.
What documents are needed for a car loan?
Standard requirements include identity proof (Aadhaar/PAN), address proof, income documents (salary slips or ITR), bank statements for 3–6 months, and the vehicle proforma invoice. Processing is often completed within 1–2 days.
What happens if I default on a car loan?
Defaulting on a car loan damages your credit score and can result in vehicle repossession after legal notice. The lender may sell the repossessed car to recover dues, with any shortfall still owed by the borrower.