FREE CALCULATOR
Car & Vehicle Loan EMI Calculator India
Find your exact car or vehicle loan EMI — with total interest cost, the impact of your down payment, and how tenure choice affects what you actually pay.
- Calculate EMI for car loans, two-wheeler loans, and commercial vehicle loans instantly.
- See how a larger down payment (20–40%) dramatically reduces total interest paid over the loan.
- Compare 3-year vs 5-year tenures — shorter tenure saves significantly on total interest cost.
₹8.00 L
5 yrs · 60 mo
1 yr
30 yrs
These are what separate the rate you are quoted from the rate you actually pay. Every figure here feeds the effective APR.
₹4,000 fee + ₹720 GST = ₹4,720
Optional. Typically ₹30,000–₹2,00,000, financed into the loan.
Live Cost Breakdown
Monthly instalment (EMI)
₹16,607/mo
for 60 months (5 yrs)
Effective APR
9.25%
25 bps above the 9% quoted
Where every ₹100 goes
Total outflow ₹10.01 L
Principal
- 79.9%₹8.00 L
Interest
- 19.6%₹1.96 L
Fees & insurance
- 0.5%₹4,720
You repay ₹1.25 for every ₹1 you borrow.
Total interest
₹1.96 L
over 5 yrs
Upfront charges
₹4,720
paid before disbursal
Tax saved
₹0
not available on this loan
Real cost
₹8.59 L
in today's ₹ at 6% inflation
Ways to finish sooner
1 extra EMI a year
Pay one extra ₹16,606.68 every twelve months
Saves
₹15,877
Finishes 4 mo early · +₹16,607 in year 1
5% step-up each year
Raise your EMI 5% at every annual appraisal
Saves
₹12,734
Finishes 5 mo early
Round the EMI up
Pay ₹17,000 instead of ₹16,606.68
Saves
₹5,972
Finishes 1 mo early · +₹4,720 in year 1
Simulated on the loan above. RBI bars lenders from charging foreclosure or prepayment penalties on floating-rate loans to individual borrowers.
Principal
Interest
Estimates for a vehicle loan, for illustration only. Actual EMI, charges and tax treatment depend on your lender's sanction terms and your own tax position. Confirm the figures on your Key Facts Statement before you sign.
How Is EMI Calculated?
Every loan EMI in India is calculated using the reducing-balance method. The formula is:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ – 1]
- PPrincipal — the loan amount you borrow
- rMonthly interest rate — annual rate ÷ 12 ÷ 100 (e.g. 8.5% p.a. → 0.007083 per month)
- nTenure in months — e.g. 20 years = 240 months
Worked example: ₹50 lakh at 8.5% for 20 years — r = 0.007083, n = 240. EMI = 50,00,000 × 0.007083 × (1.007083)²⁴⁰ ÷ [(1.007083)²⁴⁰ – 1] ≈ ₹43,390/month. Total interest paid over 20 years ≈ ₹55.3 lakh — more than the original principal.
Sample EMI Reference Table
| Loan Amount & Rate | 3 years | 5 years | 7 years |
|---|---|---|---|
| ₹5 lakh @ 8.5% | ₹15,782 | ₹10,253 | ₹7,918 |
| ₹8 lakh @ 9% | ₹25,437 | ₹16,601 | ₹12,868 |
| ₹12 lakh @ 9.5% | ₹38,450 | ₹25,176 | ₹19,652 |
| ₹15 lakh @ 10% | ₹48,399 | ₹31,873 | ₹25,046 |
EMI figures at stated rates. Rounded to nearest ₹10. Use the calculator above for your exact EMI.
What Affects Your EMI?
On-road price — banks finance the on-road price which includes registration, insurance, and accessories, not just ex-showroom.
Down payment — lenders typically fund 85–90% of the on-road price; a larger down payment reduces both EMI and total interest.
Vehicle age — new car loans get lower rates than used car loans, which can be 2–4% higher.
Employment and income — salaried applicants with stable income qualify for the lowest rates on vehicle loans.
Bundled insurance — avoid adding insurance to the loan principal; you pay interest on the premium for the full tenure.
Tips to Lower Your EMI
Put down 20–30% — this significantly reduces your EMI and total interest, and often qualifies you for a better rate.
Opt for a 3-year tenure if your income allows — the interest saving over 5 years can be ₹50,000–₹1 lakh on a ₹10 lakh loan.
Compare the dealer-arranged loan against your own bank — promotional manufacturer rates (0% for 6 months) can be genuinely cheaper.
Avoid bundling insurance into the loan amount — this inflates your principal and you pay interest on the premium.
Frequently Asked Questions
What is the EMI for a ₹10 lakh car loan?
For a ₹10 lakh car loan at 9% for 5 years, the EMI is approximately ₹20,758 per month. For a 3-year tenure at the same rate, the EMI rises to ₹31,796 but total interest paid is about ₹50,000 less.
What is the minimum down payment for a car loan in India?
Most banks require a minimum 10–15% down payment (funding 85–90% of the on-road price). Putting down 20–30% is financially beneficial — it reduces your EMI and total interest, and often qualifies you for a lower rate.
How is car loan EMI calculated?
Car loan EMI uses the standard formula: 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 tenure in months.
What is the difference between new car and used car loan rates?
New car loans typically range from 8–10% p.a. Used car loans (1–5 years old) usually carry rates of 11–15%, reflecting higher lender risk. The older the vehicle, the higher the rate.
Can I foreclose a car loan before tenure ends?
Yes. Most banks allow foreclosure after 6–12 months. PSU banks (SBI, PNB) typically charge 0–2% foreclosure fee; private banks may charge up to 5%. For floating-rate vehicle loans, RBI guidelines cap foreclosure charges for individual borrowers.