Car Loan EMI Calculator 2026
Calculate your car loan EMI online for any Indian bank or NBFC. Car (auto) loans are secured against the vehicle, so rates are moderate — typically 8–14% per year for tenures of 1–8 years. Enter your loan amount, rate and tenure to instantly see your monthly EMI, total interest, the true cost after fees, and your prepayment savings.
How Car Loan EMI Is Calculated
Car loan EMI uses the standard reducing-balance formula: EMI = P × r × (1+r)n ÷ [(1+r)n − 1]. Avoid lenders who quote a flat rate — on a flat-rate car loan the effective interest can be nearly double the headline number. Always confirm the reducing-balance rate before signing.
The True On-Road Cost of Financing
Beyond EMI, car loans include a processing fee (commonly ₹3,000–₹10,000 or about 0.5%–1%), 18% GST on the fee, and sometimes mandatory insurance bundling. A larger down payment lowers the financed amount and your EMI. Use the "Add bank charges" panel above to see the real cost.
Shorter Tenure Saves on a Depreciating Asset
A car loses value every year, so financing it over 7–8 years means paying interest on an asset worth far less than you owe. A shorter tenure keeps you from going "upside down" on the loan. Use the schedule above to see your outstanding balance year by year.
What is the EMI on an ₹8 lakh car loan?
At 9.5% over 7 years, an ₹8 lakh car loan has an EMI of about ₹13,075 per month and roughly ₹2.98 lakh of total interest. Enter your figures above for your exact number.
Is a flat rate or reducing balance better for a car loan?
Always choose reducing balance. A flat rate charges interest on the full amount for the whole tenure, so a "7% flat" loan can cost like ~13% reducing balance.
Does a bigger down payment reduce my EMI?
Yes. A larger down payment lowers the financed principal, which reduces both your EMI and the total interest you pay.