Car Loan EMI Calculator: Work Out Your Monthly EMI and Total Interest

How to use this car loan EMI calculator

Four fields drive the calculator above. Here is what to put in each one.

On-road price

Type the on-road price, not the ex-showroom figure in the advertisement. On-road adds registration, road tax and the first year's insurance, and most lenders in our data size the loan on that total.

Down payment

This is the cash you pay yourself; the calculator borrows the rest. Zero down is possible where a lender funds 100% of on-road price, but every rupee you put in shrinks each EMI.

Interest rate

Enter the rate you've actually been quoted. Floors come with conditions: UCO Bank's 7.7% p.a. is for individuals scoring 825 or more, and the median floor across the 30 lenders is 8.5% p.a. No quote yet? Run it at both.

Used-car rates run on a wider band, from Canara Bank's 7.75% p.a. to 36% p.a.; our used car loan interest rate page covers them, and the car loan interest rates page has the full new-car set.

Tenure

Most lenders in our data cap a new-car loan at 7 years (84 months); HDFC Bank, Yes Bank and CSB Bank go to 8, and IDFC FIRST Bank to 10. Longer means a smaller EMI and a bigger interest bill.

What the results mean

The EMI is what leaves your account each month; total interest is the price of borrowing over the whole tenure; total payment is the two together. Change one field at a time and watch which output moves most.

The EMI formula, in words and in numbers

Every lender's calculator, and this one, runs the same reducing-balance formula. In words: the EMI is the loan times the monthly rate times a growth factor, divided by that growth factor minus one. The growth factor is one plus the monthly rate, raised to the power of the number of months.

In symbols: E = P x r x (1+r)^n / ((1+r)^n - 1). P is what you borrow, r is the monthly rate (the yearly rate divided by 12, then by 100) and n is the number of months.

A worked car example

Borrow ₹10 lakh at 7.7% p.a. for 5 years.

• P is ₹10,00,000.
• r is 7.7 divided by 12, then by 100: 0.0064167.
• n is 5 years times 12: 60 months.
• (1+r)^n is 1.0064167 to the power 60, which comes to 1.467808.

So E = 10,00,000 x 0.0064167 x 1.467808 / 0.467808 (that is 1.467808 minus 1), which gives ₹20,133. Across 60 months you pay ₹12,07,987 (the calculator multiplies the unrounded EMI, so the total is a few rupees above 60 times ₹20,133), of which ₹2,07,987 is interest.

Why the first EMIs are mostly interest

Interest is charged each month on what you still owe. In month one you owe the whole ₹10 lakh, so ₹10,00,000 x 0.0064167 is ₹6,417 of interest, and only ₹13,716 of the first ₹20,133 repays principal (20,133 minus 6,417).

As the balance drops the interest slice shrinks while the EMI stays put, which is why prepaying early saves far more than prepaying late.

Ready reckoner: how tenure and rate move the EMI

The table under this heading lists EMIs for ₹5 lakh, ₹10 lakh and ₹15 lakh over 3, 5 and 7 years at two rates: 7.7% p.a., the lowest new-car floor in our data (UCO Bank, CIBIL 825 and above), and 8.5% p.a., the median floor across the 30 lenders.

Tenure moves the EMI a lot, and the interest even more

Take ₹10 lakh at 7.7% p.a. Over 3 years the EMI is ₹31,198 and the interest ₹1,23,134. Over 5 years the EMI falls to ₹20,133, which is ₹11,065 a month less, but the interest rises to ₹2,07,987, which is ₹84,853 more.

Over 7 years the EMI is ₹15,437, which is ₹4,696 below the 5-year EMI of ₹20,133, and the interest reaches ₹2,96,722, or ₹88,735 above the 5-year figure of ₹2,07,987.

Rate moves the EMI a little, and the interest steadily

Hold ₹10 lakh and 5 years fixed and move the rate from 7.7% to 8.5% p.a. The EMI goes from ₹20,133 to ₹20,517, a gap of ₹384 a month. That looks small, but over 60 months interest grows from ₹2,07,987 to ₹2,30,992, so the 0.8 point difference (8.5 minus 7.7) costs ₹23,005.

Amount scales everything in a straight line

Double the loan and you double both the EMI and the interest: at 8.5% over 5 years, ₹5 lakh is ₹10,258 a month with ₹1,15,496 of interest, and ₹10 lakh is ₹20,517 and ₹2,30,992. Over 5 years at 7.7%, each ₹1 lakh borrowed adds about ₹2,013 to the EMI (₹20,133 divided by 10).

The ₹10 lakh car loan EMI page applies every published floor to that one amount.

Down payment and funding share: 80%, 90% or 100% of on-road price

The funding share is the slice of the on-road price the lender pays; your down payment is the rest. The RBI sets no loan-to-value limit for car loans, so each lender's board picks its own. The share is a ceiling, not a right: your income sets a second cap (see our car loan eligibility page).

In our data the top share is 100% of on-road price, advertised by SBI, HDFC Bank, ICICI Bank, Axis Bank and Federal Bank, sometimes "for selected models" only. Most PSU banks ask for a 10% margin, which means 90% funding; PNB's standard margin is 15%; Saraswat Bank lends up to 95% with income proof.

What each share does to the EMI

Take a ₹10 lakh on-road car at 7.7% p.a. over 5 years. The EMI moves in a straight line with the loan, so each row is that share of the full-funding EMI of ₹20,133.

Interest follows the same line: full funding costs ₹2,07,987 over the 5 years, and borrowing half the price costs ₹1,03,994. Every rupee you put down is a rupee the bank never charges interest on.

How much should you put down?

With no RBI rule, this is a budgeting call. A sound start is to pay the registration, road tax and insurance yourself and finance the ex-showroom price. Put down more if the full-funding EMI bites harder into your take-home pay than you'd like, or if you may sell within a few years.

What the calculator does not include

The EMI is the biggest cost of a car loan, but not the whole bill.

Processing fee and GST

Lenders charge a one-time fee at sanction, and 18% GST sits on top. The range in our data is wide: HDFC Bank takes up to 0.5% of the loan with a floor of ₹3,500 and a cap of ₹8,000, while Axis Bank and Yes Bank go up to 2%.

On a ₹10 lakh HDFC Bank loan, 0.5% is ₹5,000 and 18% GST on that is ₹900, so ₹5,900 leaves your pocket before the first EMI. The processing fee and charges page lists every lender.

Insurance and registration

Type the ex-showroom price and road tax, registration and first-year insurance fall outside the loan; type the on-road price and you pay interest on them for the whole tenure. They cost you either way.

Prepayment and foreclosure charges

The calculator assumes you pay every EMI to the end. If you close early, the RBI's 2025 directions on pre-payment charges protect you: a floating-rate car loan to an individual for personal use, sanctioned on or after 1 January 2026, carries no prepayment or foreclosure charge, in part or in full, with no lock-in.

Fixed-rate loans are outside that rule: Axis Bank lists 5% of principal outstanding plus GST on foreclosure, and Bandhan Bank 4% on fixed-rate loans against nil on floating. Check which kind you are signing.

The APR on your Key Facts Statement

Since 1 October 2024 every car loan comes with a Key Facts Statement before you sign. Its annual percentage rate folds the processing fee and every other lender charge into one yearly figure. That APR, not the calculator's rate, is what you actually pay.

How to choose the right car loan, and the mistakes a calculator can't catch

How to choose

1. Fix the EMI you can carry, then let the calculator set the price range, not the other way round.
2. Collect two or three real quotes. A floor applies only to a borrower who meets its condition, such as UCO Bank's 7.7% for scores of 825 or more.
3. Compare the APR on each Key Facts Statement, not the headline rate.
4. Decide fixed or floating with the prepayment rule in mind: floating gives a free exit, fixed a steady EMI that may cost you to leave.
5. Take the shortest tenure whose EMI fits; the reckoner shows what every extra year costs.
6. Shortlist on the compare car loans page and read the lowest car loan interest rates with their conditions.

Common mistakes

• Typing the ex-showroom price. The loan is usually sized on the on-road price, and the gap can swallow your planned down payment.
• Using the lowest advertised rate. Floors are conditional. Work with the 8.5% median until you hold a quote.
• Taking the longest tenure to make the EMI look small. On ₹10 lakh at 7.7%, 7 years instead of 5 saves ₹4,696 a month but costs ₹88,735 more in interest.
• Forgetting that a floating EMI can move. Floating-rate bank car loans track an external benchmark, usually the RBI repo rate (5.5% since 7 October 2026), and reset at least once in three months; under the RBI's reset rules the lender must then offer you a higher EMI, a longer tenure or both.
• Ignoring the fee. A 2% processing fee on ₹10 lakh is ₹20,000 before GST, almost one whole EMI.

Once the numbers fit, open the lender page you've shortlisted and use the car loan hub for the full picture across all 30 lenders.