Car Loan Calculator
Calculate your car loan EMI, total interest and total repayment. Enter the loan amount, interest rate and tenure to plan your car purchase.
Formula last reviewed 4 August 2026 · How we verify our calculators
Monthly EMI
- Total interest
- ₹2,08,089
- Total payment
- ₹10,08,089
Updates live as you type
Frequently asked questions
Lenders usually finance 80–90% of the car's on-road price; some offer up to 100% for select customers. The rest is your down payment, which reduces your EMI and interest.
Car loans run from one to eight years. A shorter tenure means a higher EMI but far less total interest. Avoid stretching the tenure beyond the period you plan to keep the car.
Yes. The car itself is the collateral, which keeps interest rates lower than unsecured personal loans. The lender holds a lien on the vehicle until the loan is repaid.
Prepaying reduces outstanding principal and total interest, and is most effective early in the tenure. Check for any foreclosure charges before prepaying.
Don't let the loan outlast the car's value
An ₹8,00,000 car loan at 9.5% over 5 years carries a monthly EMI of ₹16,801, adding up to ₹2,08,089 in interest across 60 months — about 26% of the amount borrowed. That's meaningfully cheaper than an unsecured personal loan of the same size would cost, because the car itself is the collateral, and a lender lending against something it can repossess prices the risk lower.
Why "cheaper than a personal loan" doesn't mean "cheap to stretch out"
A car starts depreciating the moment you drive it off the lot, which makes the pairing of loan size and tenure matter more than the headline rate alone. The real risk to watch for is owing more than the car is actually worth if you ever needed to sell it — a risk that grows the longer the tenure runs and the smaller the down payment. Keeping the loan tenure short and the down payment healthy is the straightforward way to avoid that gap ever opening up.
What actually changes your total cost here
A bigger down payment and a shorter tenure both cut total interest meaningfully, at the cost of a somewhat higher EMI in exchange — a trade worth making if your monthly budget can absorb it. Because the loan is secured, rates already sit well below personal loan territory, but they still vary noticeably by lender, tenure and your credit profile, so comparing two or three offers before signing is worth the half hour it takes. One more thing this calculator can't show you: fuel, insurance and routine maintenance are real recurring costs on top of the EMI, so size your monthly commitment with room left over for those, not against your full available budget.