Car loan calculator

Buying the car is easy—finding the right loan is the real secret. That’s where a Car Loan Calculator comes in. It takes away the guesswork and shows you exactly what your monthly payments will look like, how much interest you’ll pay, and the total cost over the loan term.

Whether you’re buying your first car, upgrading for the family, or finally getting that dream SUV, a Car Loan Calculator helps you plan with confidence.

What is car loan?

A car loan is money you borrow from a bank, NBFC, or other lender to purchase a vehicle. You repay it in monthly installments (EMIs) over a fixed period, along with interest.

How Does a Car Loan Work?

• Loan Amount (Principal) – This is the amount you borrow after paying any down payment.
• Interest Rate – The percentage the lender charges for borrowing money.
• Loan Tenure – The time you’ll take to repay the loan (in months or years).
• EMI (Equated Monthly Instalment) – The fixed amount you pay every month until the loan is cleared.

Formula for EMI

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

Example

• Loan Amount = ₹10,00,000
• Interest Rate = 8% per annum (0.08/12 per month)
• Tenure = 60 months (5 years)

End of the month

Calculated EMI: 20,278

What is a Car Loan Calculator and How Does It Help?

A car loan calculator is a simple tool that helps you figure out your monthly EMI and total repayment for a car loan. You just need to enter:

• Loan amount (like ₹8,00,000)
• Loan tenure (like 5 years)
• Interest rate (like 9% per year)

In seconds, it shows you:

• Your monthly EMI amount
• Total interest you’ll pay over the loan period
• The total cost of the loan (principal + interest)

How to Use a Car Loan Calculator (Step-by-Step)

1. Enter Loan Amount – Price of the car minus your down payment.
2. Enter Interest Rate – Annual rate from your lender.
3. Enter Loan Tenure – Usually between 1–7 years.
4. Click Calculate – Get instant EMI, total interest, and total payment details.