Finacolada
Loans

Car Loan EMI Calculator: Monthly EMI and Total Interest

What will my car loan EMI be?

See the monthly EMI on your car loan, the total interest over 3, 5 or 7 years and how shorter or longer tenures change the cost. Enter the loan amount after your down payment, not the full on-road price.

Your result

A ₹8 L car loan at 9% for 5 yrs has an EMI of ₹16,607, so you repay ₹9.96 L in total, of which ₹1.96 L is interest.

Monthly EMI
₹16,607
for 5 yrs
Total interest
₹1.96 L
20% of total payout
Total payout
₹9.96 L
principal plus interest
Interest in year 1
33%
of your EMIs; 5% by year 5
  • InfoEMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan exactly. Your lender's rounding can differ by a few rupees.

Change the numbers

Breakdown

Where your ₹9.96 L goes

Where your ₹9.96 L goesDonut chart. Principal: ₹8 L (80.3%); Interest: ₹1.96 L (19.7%).
  • Principal₹8 L · 80.3%
  • Interest₹1.96 L · 19.7%
For every ₹100 you borrow you pay about ₹25 in interest over the full tenure.
Show the numbers
PartValueShare
Principal₹8 L80.3%
Interest₹1.96 L19.7%

How each year's EMIs split: principal versus interest

  • Principal repaid
  • Interest paid
Loan year 5₹1.9 LPrincipal repaid₹9,382Interest paid₹1.99 LTotal
How each year's EMIs split: principal versus interestStacked area chart of Principal repaid, Interest paid by loan year, from 1 to 5. At loan year 5: Principal repaid ₹1.9 L, Interest paid ₹9,382, Total ₹1.99 L.
In year 1 about 33% of your EMIs goes to interest; by year 5 only 5% does.
Show the numbers
Loan yearPrincipal repaidInterest paidTotal
1₹1.33 L₹66,616₹1.99 L
2₹1.45 L₹54,171₹1.99 L
3₹1.59 L₹40,558₹1.99 L
4₹1.74 L₹25,669₹1.99 L
5₹1.9 L₹9,382₹1.99 L

Balance still owed and interest paid so far

  • Balance still owed
  • Interest paid so far
Loan year 5₹0Balance still owed₹1.96 LInterest paid so far
Balance still owed and interest paid so farLine chart of Balance still owed, Interest paid so far by loan year, from 0 to 5. At loan year 5: Balance still owed ₹0, Interest paid so far ₹1.96 L.
The balance falls slowly at first because early EMIs are mostly interest; the interest line climbs fastest in the early years.
Show the numbers
Loan yearBalance still owedInterest paid so far
0₹8 L₹0
1₹6.67 L₹66,616
2₹5.22 L₹1.21 L
3₹3.63 L₹1.61 L
4₹1.9 L₹1.87 L
5₹0₹1.96 L

Repayment schedule

PeriodEMIs paidInterestPrincipalBalance
Year 1₹1,99,284₹66,616₹1,32,668₹6,67,332
Year 2₹1,99,284₹54,171₹1,45,113₹5,22,219
Year 3₹1,99,284₹40,558₹1,58,726₹3,63,493
Year 4₹1,99,284₹25,669₹1,73,615₹1,89,878
Year 5₹1,99,260₹9,382₹1,89,878₹0

Worked example

Example with the default numbers — change them above.

Car loan amount: ₹8,00,000 · Interest rate (per year): 9% · Loan tenure: 5 yrs

A ₹8 L car loan at 9% for 5 yrs has an EMI of ₹16,607, so you repay ₹9.96 L in total, of which ₹1.96 L is interest.

Monthly EMI ₹16,607 · for 5 yrs
Total interest ₹1.96 L · 20% of total payout
Total payout ₹9.96 L · principal plus interest
Interest in year 1 33% · of your EMIs; 5% by year 5

How the Car Loan EMI Calculator works

  1. Subtract your down payment from the on-road price and enter the rest as the loan amount.
  2. Enter the yearly rate from your offer and the tenure in years, usually between 3 and 7 for a car.
  3. The rate is divided by 12 and charged each month on the balance still owed (reducing balance).
  4. The EMI formula gives the fixed payment that clears the loan in your chosen number of months.
  5. Compare tenures by changing the years: a longer tenure lowers the EMI but raises total interest.

Car loan EMI formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = car loan amount
r = yearly interest rate ÷ 12 ÷ 100
n = tenure in months (years × 12)

Assumptions and limits

  • Interest is charged on the reducing balance. If your dealer quotes a flat rate, convert it first; a flat rate costs far more than the same percentage on a reducing balance.
  • The rate is fixed for the whole tenure, as is usual for car loans.
  • Processing fees, insurance, registration and accessories are not included in the EMI.
  • EMIs are rounded to the nearest rupee and the last EMI is adjusted to clear the loan.
  • Some lenders charge for early closure of a car loan. Check your loan agreement before prepaying.

Frequently asked questions

How is car loan EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate (yearly rate ÷ 12 ÷ 100) and n the months. A ₹8 lakh car loan at 9% for 5 years has an EMI of ₹16,607 and total interest of about ₹1.96 lakh.

Should I take a 3, 5 or 7 year car loan?

A shorter loan costs less interest but has a bigger EMI. On ₹8 lakh at 9%: 3 years gives ₹25,440 a month and about ₹1.16 lakh of interest, 5 years gives ₹16,607 and ₹1.96 lakh, and 7 years gives ₹12,871 and ₹2.81 lakh. Pick the shortest tenure whose EMI you can pay comfortably.

What is the difference between flat and reducing-balance interest on a car loan?

With a flat rate, interest is charged on the full original loan for the entire tenure, even though you repay part of it every month. With a reducing-balance rate it is charged only on what you still owe. The same percentage costs much more as a flat rate, so ask for the reducing-balance rate before comparing.

How much down payment should I make on a car?

A bigger down payment means a smaller loan, a lower EMI and less interest. Lenders often fund a large share of the price but the limit varies by lender, car and your profile. Keep enough savings for insurance, registration and running costs rather than putting everything into the down payment.

Can I prepay or close my car loan early?

Usually yes. Most car loans are fixed-rate, and on those a lender may charge for part payment or early closure, but only if the charge is written in your sanction letter and Key Facts Statement (RBI rules from 1 January 2026). Floating-rate car loans to individuals carry no prepayment charge. Use the loan prepayment calculator to see how much interest an early part payment would save.

Does the EMI include insurance and registration?

No. This EMI covers only repayment of the loan amount you enter plus interest. Insurance, registration, road tax, fees and accessories are separate costs unless you have asked the lender to finance them, in which case add them to the loan amount.

Sources

Logic and rates last verified on .

Embed this calculator

Free to use on your blog or website. Keep the credit link below the iframe visible: it is the only thing we ask in return.