Car Loan Calculator
Calculate your car loan EMI, total interest payable, and total cost of ownership. See how financing compares to a cash purchase.
Monthly EMI
₹16,606.68
Loan Amount
₹8,00,000
Total Interest
₹1,96,401
Total Cost of Ownership
₹11,96,401
On-road price + interest
Loan Breakdown
- Principal 80.3%
- Interest 19.7%
Amortization Schedule
| Year / Month | Opening Bal. Open | Principal | Interest | Closing Bal. Close |
|---|---|---|---|---|
| ▶ 2026 | ₹8,00,000 | ₹1,32,664 | ₹66,616 | ₹6,67,336 |
| ▶ 2027 | ₹6,67,336 | ₹1,45,109 | ₹54,171 | ₹5,22,227 |
| ▶ 2028 | ₹5,22,227 | ₹1,58,721 | ₹40,559 | ₹3,63,506 |
| ▶ 2029 | ₹3,63,506 | ₹1,73,610 | ₹25,670 | ₹1,89,896 |
| ▶ 2030 | ₹1,89,896 | ₹1,89,896 | ₹9,384 | ₹0 |
Loan vs Cash Purchase
| Without Loan (Cash) | With Loan | |
|---|---|---|
| Total Cost | ₹10,00,000 | ₹11,96,401 |
| Interest Cost | ₹0 | ₹1,96,401 |
| Interest as % of Price | 0% | 19.64% |
How is Car Loan EMI Calculated?
The EMI (Equated Monthly Installment) is calculated using the standard amortization formula:
- P = Loan Amount (On-road Price − Down Payment)
- r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
- n = Tenure in Months (12–84)
The Total Cost of Ownership = On-road Price + Total Interest paid over the loan tenure.
Frequently Asked Questions
What is a good down payment for a car loan? ▼
Most lenders recommend a down payment of at least 10–20% of the on-road price. A higher down payment reduces your loan amount, monthly EMI, and total interest paid. It also improves your chances of loan approval.
What is the maximum car loan tenure in India? ▼
Most banks and NBFCs offer car loans with a maximum tenure of 84 months (7 years). A longer tenure reduces your monthly EMI but increases the total interest paid. For new cars, lenders typically offer up to 84 months; for used cars, the maximum is usually 60 months.
What is included in the on-road price? ▼
The on-road price includes the ex-showroom price, road tax, registration charges, insurance, and any dealer accessories. It is the total amount you pay to drive the car home. Car loans are typically sanctioned on the on-road price minus the down payment.
Is it better to buy a car with a loan or cash? ▼
Paying cash avoids interest costs entirely, making it cheaper overall. However, a loan preserves your liquidity and lets you invest the cash elsewhere. If your investment returns exceed the loan interest rate, financing can be financially advantageous. Use the comparison card above to see the exact interest cost for your scenario.