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Car Loan EMI Calculator

Calculate your car loan EMI with on-road price, down payment, and total cost of ownership.

Popular cars

Approx. mid-variant on-road prices (2025-26). Actual prices vary by city and variant.

₹1.00 L₹2.00 Cr
20% = ₹2.40 L

Loan amount: ₹9.60 L

7.00%20.00%
1 yr7 yr

Monthly EMI

₹19,928

Loan Amount

₹9.60 L

Total Interest

₹2.36 L

Total Payment

₹11.96 L

Down Payment

₹2.40 L

PrincipalInterest

Total cost of ownership (financing)

On-Road Price

₹12.00 L

Interest Cost

₹2.36 L

Effective Total

₹14.36 L

About the Car Loan EMI Calculator

A car loan EMI calculator does more than compute a monthly number - it reveals the true cost of driving a car on credit. The on-road price includes registration, insurance, and accessories that many buyers forget to finance. Choosing the right down payment is a balance between preserving cash and minimizing total interest paid. A 20% down payment vs a 10% down payment on a 12 lakh car can save over 50,000 in total interest over 5 years.

Car Loan EMI Formula

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)

P = Loan amount (on-road price minus down payment) | r = Monthly interest rate (annual rate / 12 / 100) | n = Loan tenure in months

Worked Example

Maruti Swift: On-road price 9 lakh, 20% down (1.8 lakh), loan 7.2 lakh at 9% for 5 years

On-road Price:9,00,000
Down Payment (20%):1,80,000
Loan Amount:7,20,000
Rate:9% p.a.
Tenure:5 years

EMI: 14,952 | Total paid: 8,97,120 | Total interest: 1,77,120 | Total cost of ownership: 10,77,120 (loan + down payment)

Tips & Insights

  • 1

    The on-road price is 10-18% higher than the ex-showroom price due to RTO, insurance, and accessories. Always calculate EMI on the on-road price.

  • 2

    A 30% down payment reduces your EMI and total interest significantly compared to 10%. Every additional rupee upfront saves proportionally in interest.

  • 3

    Car loans at new car dealerships often have higher rates than your bank. Compare rates before signing at the showroom.

  • 4

    A car depreciates 20% in year 1 and 15% in year 2. If you finance 90%, you owe more than the car is worth immediately - negative equity.

  • 5

    Consider insurance cost: comprehensive insurance for a new car can be 30,000-70,000/year for the first 3 years.

  • 6

    If you plan to sell within 3-4 years, choose the shortest affordable tenure to build equity faster.

Why this matters for you

The true cost of a car is not the sticker price or even the on-road price - it is the on-road price plus all the interest you pay over the loan tenure. For a 10 lakh car financed at 85%, the total cost including interest can be 12-13 lakh over 7 years. Knowing this upfront helps you decide: is this car worth it? Can I buy a slightly cheaper model with cash? Should I wait 6 months and save a larger down payment? The calculator makes these trade-offs concrete.

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