Car Loan EMI Calculator
Calculate monthly EMI and total interest on your car loan.
Results
Monthly EMI
₹12,601
Loan amount
₹6.00 L
Total interest
₹1.56 L
Total payment (principal + interest)
₹7.56 L
Principal vs Interest by year
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How is car loan EMI calculated in India?
Car loan EMI is calculated using the reducing balance method — the standard formula used by all Indian banks and NBFCs. The EMI depends on the loan amount (car price minus down payment), the annual interest rate, and the tenure. A larger down payment directly reduces your principal and therefore your EMI. Most banks in India offer car loan rates between 8%–14% depending on your CIBIL score, car model, and lender.
In India, car loan tenures typically range from 1 to 7 years. Shorter tenures mean higher EMIs but significantly lower total interest paid. A common thumb rule is to keep your car loan EMI below 15% of your monthly take-home salary, and to make a down payment of at least 20% of the car's on-road price. On-road price includes registration, insurance, and accessories — not just the ex-showroom price.
The amortization chart above shows how your EMI is split between principal repayment and interest each year. In the early years, a larger portion goes toward interest. Making even a small prepayment in the first two years can save a meaningful amount on total interest — worth considering if you receive a bonus or variable pay.