Car EMI Calculator (India)

How to use the car EMI calculator

Enter the amount you plan to borrow, the annual interest rate your bank has quoted and the loan tenure in years. The calculator shows your monthly EMI, the total interest you will pay and a year-by-year schedule of how much principal and interest each year's payments cover. Everything updates as you move the sliders.

Most new car loans in India in 2026 carry rates between about 8.5% and 11.5%, with the best offers for strong credit profiles starting lower. Read our car loan interest rates guide to see what affects your rate and how to negotiate it.

What the numbers tell you

Notice how much of your early EMIs goes to interest. In the first year of a five-year loan, a large share of each payment is interest; by the final year, almost all of it is principal. That is why prepaying early saves the most interest.

Try changing the tenure from five to seven years. The EMI drops, but the total interest rises sharply. A shorter tenure, if the EMI is comfortable, is almost always cheaper overall.

Before you borrow

Check whether the car fits your budget with our car affordability calculator, and work out the full on-road price so you know how much you actually need to finance. For help choosing the car itself, see our best cars under ₹10 lakh.

Frequently asked questions

How is car loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.

Is a longer tenure better for a car loan?

A longer tenure lowers the EMI but increases the total interest. For most buyers, five years is a sensible balance between a manageable EMI and total cost.

Should I include road tax and insurance in the loan?

Many banks finance a percentage of the on-road price. Borrowing less by paying road tax and insurance from savings reduces total interest.

Results are estimates for planning. Taxes, rates and prices vary by state, lender and dealer, so confirm final figures before you sign anything.