Car Loan EMI Calculator
Calculate car loan EMI for any vehicle price with current auto loan interest rates.
Monthly EMI
₹14,530.85
Total Payment
₹8.72 L
Total Interest
₹1.72 L
Principal
80.29%
Interest
19.71%
Total EMIs
60
Loan closes
Jul 2031
Break-even
Year 1
Interest : Principal
19.71% : 80.29%
Outstanding balance at any month
About Car Loan EMI Calculator
Car loan interest rates in India range from 8.5%–12% depending on the vehicle type (new/used), loan tenure, and your credit score. New car loans typically get better rates than used car loans. Banks finance up to 90% of the on-road price; ex-showroom price is used for rate calculation.
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Car Loan EMI by loan amount
Monthly EMI and total interest at 9% for 5 years — the typical rate and tenure for a car loan. Change any value in the calculator above to match your own loan.
| Loan amount | Monthly EMI | Total interest |
|---|---|---|
| ₹5 L | ₹10,379 | ₹1.23 L |
| ₹7 L (default) | ₹14,531 | ₹1.72 L |
| ₹10 L | ₹20,758 | ₹2.45 L |
| ₹20 L | ₹41,517 | ₹4.91 L |
| ₹30 L | ₹62,275 | ₹7.37 L |
| ₹50 L | ₹1,03,792 | ₹12.28 L |
| ₹1 Cr | ₹2,07,584 | ₹24.55 L |
₹7 L Car Loan EMI by tenure
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 3 years | ₹22,260 | ₹1.01 L |
| 4 years | ₹17,420 | ₹1.36 L |
| 5 years (default) | ₹14,531 | ₹1.72 L |
| 7 years | ₹11,262 | ₹2.46 L |
Stretching a ₹7 L car loan from 3 to 7 years lowers the EMI by ₹10,998/month but adds ₹1.45 L in extra interest. Pick the shortest tenure your budget comfortably allows.
Income needed for a ₹7 L car loan
Minimum net monthly income
₹29,062
EMI at 50% of income (tight approval)
Comfortable net monthly income
₹36,328
EMI at 40% of income (room to spare)
Banks assess your Fixed Obligation to Income Ratio (FOIR) — your total EMIs as a share of net income. With an EMI of ₹14,531 on this ₹7 L car loan, you generally need at least ₹29,062 net per month, and ₹36,328+ for a comfortable approval if you already have other EMIs or credit-card dues.
Frequently Asked Questions
What is the EMI on a ₹7 L car loan at 9%?▾
At 9% for 5 years, the EMI on a ₹7 L car loan is about ₹14,531 per month. Over the full term you repay ₹8.72 L — ₹7 L of principal plus ₹1.72 L of interest, which is 25% of what you borrow. Adjust the amount, rate, and tenure above for your exact figures.
How much monthly income do I need for a ₹7 L car loan?▾
Lenders usually want your total EMIs to stay within 40–50% of net monthly income (the FOIR rule). With an EMI of ₹14,531, you would typically need at least ₹29,062 net per month for approval, and ₹36,328 or more to stay comfortable if you already have other EMIs or credit-card dues.
What is the current car loan interest rate in India?▾
New car loan rates range from 8.5% (SBI, HDFC for top-rated borrowers) to 10.5% for average profiles. Used car loans are typically 1–3% higher. NBFCs like Bajaj Finance and Mahindra Finance offer fast approvals but at slightly higher rates (11–14%).
How much car loan can I get on a 60,000 salary?▾
With 60,000 net monthly income and no existing EMIs, most banks approve car loans of 5–8 lakh for a 5-year tenure. Loan-to-Value (LTV) is capped at 85–90% of the on-road price, so you need to arrange the remaining 10–15% as a down payment.
Should I choose 3, 5, or 7 years for a car loan?▾
A 5-year tenure is the sweet spot for most buyers - EMI is manageable and total interest is reasonable. 7-year tenures reduce EMI but you may end up owing more than the car's resale value (negative equity) in the first 2–3 years, which can be a problem if you want to sell early.
Is it better to pay cash or take a car loan for a new car?▾
If your savings earn less than the car loan rate (8.5–10%), pay cash. If they earn more (e.g., equity SIP at 12%+), taking a loan and keeping the cash invested makes financial sense. Factor in the peace of mind of owning the car outright vs the opportunity cost of the cash.
What is the difference between on-road price and ex-showroom price for car loans?▾
Ex-showroom price is the manufacturer's listed price. On-road price includes registration, insurance, and accessories and is typically 10–15% higher. Banks lend a percentage of the on-road price. Always calculate your down payment based on on-road price, not ex-showroom.
Does a car loan affect my CIBIL score?▾
Yes - timely car loan EMIs build your credit history and improve your CIBIL score over time. Missing even one EMI drops your score by 50–100 points and stays on your report for 3 years. A car loan is also useful for first-time borrowers to establish a credit history.