Car Loan EMI Calculator with Down Payment
Enter the on-road price, your down payment, the approved rate and tenure. See the monthly EMI, loan amount, interest, upfront cash requirement, total purchase outflow and full repayment schedule.
Calculate Your Car Loan EMI
Use the price and charges from the dealer quotation and the rate from your lender's Key Facts Statement.
Upfront cash includes the down payment, processing fee and tax. Total purchase outflow adds all EMIs to those upfront amounts.
Rate sensitivity
| Rate | EMI | Total interest |
|---|
| Month | Opening balance | EMI | Principal | Interest | Closing balance |
|---|
Related Car and Loan Calculators
Check the finance cost alongside fuel, insurance and other ownership expenses.
What Is a Car Loan EMI Calculator?
A car loan EMI calculator estimates the monthly instalment on money borrowed to buy a new or used vehicle. This version starts with the on-road price and subtracts your down payment to find the loan principal. It then applies the annual interest rate and tenure through a reducing-balance formula.
The result separates the car's price from the cost of financing it. You see the loan amount, total interest, processing charges, upfront cash and total outflow across the loan term. The amortisation schedule also shows how each EMI reduces the outstanding balance.
Use the estimate while comparing dealer finance, bank offers and NBFC offers. Do not compare EMI alone. A longer tenure can make one offer look affordable while producing a much higher interest bill.
How to Use This Calculator
- Enter the final on-road price from the dealer quotation after discounts.
- Enter the down payment you will make from savings or the net value of an accepted trade-in.
- Enter the approved annual interest rate shown in the lender's sanction letter or Key Facts Statement.
- Enter the loan tenure in whole months. Common examples are 36, 48, 60, 72 and 84 months.
- Add the processing fee percentage and tax charged on that fee. Use zero where a charge does not apply.
- Select Calculate EMI. Review the EMI, total interest, financed share and full purchase outflow.
- Test a higher down payment, a shorter tenure and a rate one percentage point lower.
- Download the month-wise schedule if you want to compare it with the lender's repayment sheet.
Car Loan EMI Formula
The standard monthly reducing-balance formula is:
- P is the loan principal, on-road price minus down payment.
- r is the monthly interest rate, annual rate ÷ 12 ÷ 100.
- n is the total number of monthly instalments.
Interest is calculated on the outstanding balance. Early EMIs contain more interest because the balance is high. Later EMIs contain more principal. At a genuine 0% rate, the calculator divides the loan amount equally across the selected months.
Worked example
Assume a car has an on-road price of ₹12,00,000. You pay ₹2,00,000 upfront and finance ₹10,00,000 at 8.75% for 60 months. A 0.5% processing fee and 18% tax on that fee are entered.
| On-road price | ₹12,00,000 |
|---|---|
| Down payment | ₹2,00,000 |
| Loan amount | ₹10,00,000 |
| Estimated EMI | ₹20,637.23 |
| Total loan interest | ₹2,38,233.96 |
| Processing fee and tax | ₹5,900 |
| Upfront cash needed | ₹2,05,900 |
| Total purchase outflow | ₹14,44,133.96 |
The total purchase outflow exceeds the on-road price by the loan interest and finance charges. Fuel, maintenance, parking, tolls and future insurance renewals are separate ownership costs.
How Down Payment Changes Your Car Loan
A larger down payment reduces the financed principal. That lowers both EMI and total interest when the rate and tenure remain unchanged. It also reduces the loan-to-value ratio, called LTV, which is the financed amount divided by the car's price.
For the same ₹12,00,000 car at 8.75% for 60 months, increasing the down payment from ₹2,00,000 to ₹3,00,000 reduces the principal from ₹10,00,000 to ₹9,00,000. The EMI falls from about ₹20,637 to ₹18,574, and total interest falls by roughly ₹23,823.
Do not empty your emergency fund only to reduce EMI. Keep enough cash for registration differences, insurance, accessories, servicing and unexpected repairs. The right down payment balances loan cost with your cash reserve.
How Tenure Changes EMI and Total Interest
The table uses a ₹10,00,000 loan at 8.75%. It shows the trade-off between monthly affordability and total cost.
| Tenure | Approx. EMI | Approx. total interest | Approx. total repayment |
|---|---|---|---|
| 36 months | ₹31,683.51 | ₹1,40,606.26 | ₹11,40,606.26 |
| 60 months | ₹20,637.23 | ₹2,38,233.96 | ₹12,38,233.96 |
| 84 months | ₹15,962.49 | ₹3,40,849.35 | ₹13,40,849.35 |
Moving from 36 to 84 months cuts the EMI by about half but adds around ₹2,00,243 in interest. Choose the shortest tenure that still leaves room for routine expenses, savings and annual vehicle costs.
On-Road Price vs Ex-Showroom Price
The ex-showroom price is the vehicle price before several purchase-related costs. The on-road price is closer to the amount required to take the car home. A dealer quotation may include registration, road tax, insurance, handling items, extended warranty, accessories and optional service packages.
Use the final negotiated on-road figure in this calculator. Remove optional add-ons you do not want before calculating. If your lender finances only the ex-showroom price or excludes some items, enter the actual financed principal by adjusting the down payment so the calculated loan amount matches the sanction.
Check every line in the quote. Dealer discounts and exchange bonuses can reduce the price, while accessories and bundled products can raise it. A loan advertised as 100% funding may refer to a specific price base, not every invoice item.
Current Car Loan Rate Context in India
Rates depend on credit profile, income, employer or business stability, vehicle type, tenure, lender relationship and the lender's pricing policy. Starting rates are not guaranteed approvals.
As checked on July 23, 2026, SBI listed fixed new-car rates of 8.70% to 9.85% and certified pre-owned rates of 10.45% to 15.60%. ICICI Bank listed new-car rates from 8.40% for loans above 36 months and disclosed a June 2026 disbursal range of 7.90% to 11.20% for new cars and 9.75% to 16.90% for used cars. These examples show why the calculator default must be replaced with your approved rate.
New, Used and Electric Car Loans
| Loan type | Typical pricing factor | What to verify |
|---|---|---|
| New car | Credit score, car segment, income and tenure. | Funding base, dealer discount, insurance and processing fee. |
| Used car | Vehicle age, valuation, condition and resale risk. | Maximum vehicle age at loan end, valuation fee and higher rate. |
| Electric car | Lender scheme, model eligibility and borrower profile. | Scheme conditions, battery warranty and insurance cost. |
Used-car loans often carry higher rates and shorter eligible tenures. Electric-vehicle schemes may offer separate pricing, but the total decision should include charging access, insurance, battery terms and resale assumptions.
Processing Fee, APR and Key Facts Statement
The processing fee may be a percentage, a fixed amount or a capped amount. Tax and third-party costs may apply. This tool assumes the fee is charged on the calculated loan principal and paid upfront with its tax. If the lender finances the fee, add it to the principal instead.
RBI's Key Facts Statement rules apply to covered new retail term loans sanctioned on or after October 1, 2024. The KFS must show the annual percentage rate, called APR, an APR computation sheet and an amortisation schedule. APR includes interest and applicable loan charges, so it is better than the nominal rate for comparing offers.
Read the KFS before signing. Check the approved loan amount, fixed or floating status, repayment dates, late-payment charges, insurance, valuation costs, documentation charges and prepayment conditions. Charges not stated in the KFS generally require explicit consent before they are added.
Fixed Rate, Floating Rate and Prepayment
A fixed-rate car loan keeps the contractual rate unchanged for the stated period, subject to the agreement. A floating-rate loan can change with its benchmark. This calculator assumes one rate for the full tenure. Recalculate after every rate reset on a floating loan.
RBI's 2025 prepayment directions apply to loans sanctioned or renewed from January 1, 2026. Covered regulated entities must not levy prepayment charges on floating-rate loans to individuals for non-business purposes. The protection applies to part or full prepayment without a minimum lock-in. Fixed-rate loans and cases outside the stated scope follow the lender's disclosed policy.
Ask whether part-payment reduces EMI, tenure or both. Early principal reduction usually saves more interest than the same payment made near the end because the balance stays lower for more months.
Before You Accept a Car Loan
- Negotiate the car price before discussing monthly EMI.
- Compare the same principal and tenure across lenders.
- Check the approved rate, APR, processing fee and every third-party charge.
- Confirm whether the quoted rate is fixed or floating.
- Verify which on-road items the lender will finance.
- Read part-payment, foreclosure and hypothecation-removal conditions.
- Check the first EMI date and any broken-period interest.
- Budget for insurance renewal, fuel, servicing, tyres, parking and tolls.
- Keep an emergency fund after making the down payment.
- Avoid paying unverified agents or sharing OTPs and banking credentials.
Frequently Asked Questions
How is car loan EMI calculated?
Car loan EMI is calculated from the financed principal, monthly interest rate and number of monthly instalments using the reducing-balance formula. The principal equals the on-road price minus the down payment in this calculator.
Should I enter the on-road or ex-showroom price?
Enter the final on-road price from the dealer quotation. If the lender excludes some items, adjust the down payment until the calculated loan amount matches the sanctioned principal.
What interest rate should I enter?
Enter the approved nominal annual rate in your sanction letter or Key Facts Statement. Do not use an advertised starting rate unless the lender has approved it for your loan.
How much down payment is best for a car loan?
A larger down payment reduces EMI, interest and financed share. The best amount also leaves you with enough emergency cash for insurance, servicing and unexpected expenses.
Does a longer tenure make a car loan cheaper?
No. A longer tenure usually lowers the monthly EMI but raises total interest because the principal remains outstanding for more months.
Does the processing fee affect EMI?
It does not affect EMI when paid upfront. It raises upfront cash and total outflow. If the lender adds the fee to the loan principal, include that amount in the financed principal.
Can this calculator estimate a used-car loan?
Yes. Enter the used car's agreed price, your down payment, approved used-car rate and eligible tenure. Also verify valuation charges and the lender's vehicle-age limits.
Can I calculate a 0% car finance offer?
Yes. At 0% interest, the tool divides the loan principal equally by the selected months. Check whether the offer replaces a cash discount or adds other charges.
Are prepayment charges allowed on car loans?
For covered floating-rate non-business loans to individuals sanctioned or renewed from January 1, 2026, RBI directions prohibit prepayment charges. Fixed-rate and other cases follow the disclosed lender policy.
Why might the lender's EMI differ from this estimate?
Differences may come from disbursal dates, broken-period interest, day-count methods, financed fees, insurance, rate resets or rounding. Use the lender's signed KFS and schedule as the final record.
Methodology and Official Sources
The tool uses the standard monthly reducing-balance EMI formula. It supports zero interest, builds each schedule from the outstanding balance and adjusts the final instalment for minor rounding differences. Rate examples and regulatory notes were checked against official pages available on the update date.
Last Updated: July 23, 2026
Financial disclaimer: This calculator provides educational estimates, not a loan offer, valuation, legal advice, tax advice or financial advice. Prices, rates, fees, taxes, eligibility and repayment terms vary. Verify every figure in the dealer quotation, lender's current KFS and signed agreement before making a decision.