What will your car loan EMI cost every month?
Estimate the monthly EMI and total interest for a new or used vehicle. The on-road price, taxes and fees depend on your state and dealer, so enter the charges rather than using a guessed percentage.
Your car loan EMI assumptions
Mathematical EMI illustration only; assumes fixed nominal rate /12 and level payments, with optional residual due at the end. Actual bank rates, KFS APR, processing fees, flat-rate advertised offers, state road tax, GST on services, insurance, repossession rights and loan eligibility differ. No current bank lending rate is assumed.
Illustration: ₹12 lakh car, ₹2.5 lakh down payment and ₹80,000 additional financed charges over 60 months at a hypothetical 9% nominal rate. Confirm actual rates and costs with the lender.
EMI and cost of borrowing
Normal EMI versus balloon example
Monthly EMI balance
| Month | Interest | Principal paid | Loan outstanding |
|---|---|---|---|
| 1 | ₹7,725 | ₹13,656 | ₹10,16,344 |
| 2 | ₹7,623 | ₹13,759 | ₹10,02,585 |
| 3 | ₹7,519 | ₹13,862 | ₹9,88,724 |
| 4 | ₹7,415 | ₹13,966 | ₹9,74,758 |
| 5 | ₹7,311 | ₹14,070 | ₹9,60,688 |
| 6 | ₹7,205 | ₹14,176 | ₹9,46,512 |
| 12 | ₹6,555 | ₹14,826 | ₹8,59,195 |
| 24 | ₹5,164 | ₹16,217 | ₹6,72,367 |
| 36 | ₹3,643 | ₹17,738 | ₹4,68,014 |
| 48 | ₹1,979 | ₹19,402 | ₹2,44,491 |
| 60 | ₹159 | ₹21,222 | ₹0 |
How to calculate car loan EMI in India
- 01
Enter the negotiated ex-showroom price or drive-away price, then separately add only charges NOT already included that are to be financed. Do not double count on-road tax or registration.
- 02
Enter your actual down payment and positive net exchange equity after any existing vehicle loan closure. A trade-in with negative equity needs separate financing treatment.
- 03
Use the bank's stated nominal annual borrowing rate and duration in whole months. RBI asks borrowers to check the Key Facts Statement (KFS) and Annual Percentage Rate, which may include fees and is distinct from this interest-only model.
- 04
Review EMI, total interest and the final balloon if present. A lower EMI from longer tenure may still make the loan more expensive; include insurance, maintenance and fuel in your monthly budget.
What to verify in your bank's KFS
Mathematical EMI illustration only; assumes fixed nominal rate /12 and level payments, with optional residual due at the end. Actual bank rates, KFS APR, processing fees, flat-rate advertised offers, state road tax, GST on services, insurance, repossession rights and loan eligibility differ. No current bank lending rate is assumed.
Car loan EMI questions
Does this calculate my state's road tax and registration?
No. Charges vary by state, vehicle classification and insurance. Enter a verified separately financed amount from your dealer quote.
What if my bank says the annual percentage rate is different?
APR can include processing and other mandatory costs. This tool computes interest from the nominal annual rate; compare actual KFS disclosures before applying.
Do regular Indian car loans require a balloon?
Many use normal EMI without one. Keep the balloon at zero unless a financed residual is explicitly due under the contract.
Reserve Bank of India — Borrower financial awareness and KFS
Check your bank's actual APR, not an assumed rate · Mathematical EMI illustration only; assumes fixed nominal rate /12 and level payments, with optional residual due at the end. Actual bank rates, KFS APR, processing fees, flat-rate advertised offers, state road tax, GST on services, insurance, repossession rights and loan eligibility differ. No current bank lending rate is assumed.