Car Loan EMI Calculator

The calculator opens with an ₹8,00,000 loan at 9.5% for 5 years. That gives an EMI of about ₹16,801, total interest of about ₹2.08 lakh and a total repayment of about ₹10.08 lakh.

The loan amount is the on-road price minus your down payment, so get a written on-road quotation first. GST 2.0 changed car prices from 22 September 2025: cars above the small-car limits (petrol above 1200cc or longer than 4 metres, diesel above 1500cc or longer than 4 metres) now attract 40% GST, smaller cars a lower rate, and compensation cess has ended on all goods except tobacco products. Work from a current quotation rather than an old brochure price.

Take a car with an on-road price of ₹10 lakh, financed at 9.5% for 5 years:

Each extra ₹1 lakh you put down cuts the EMI by about ₹2,100 and the interest by about ₹26,000. A car loses value from the day it is registered, so a larger down payment also lowers the chance that you owe more than the car would sell for.

Moving from 5 to 7 years lowers the EMI by about ₹3,726 but adds about ₹90,000 of interest. If you usually change cars every five years or so, a 7-year loan means you could still be paying for a car you are trying to sell.

Dealers sometimes quote a flat rate, which charges interest on the full loan for the whole tenure. You can convert it with this calculator in two steps.

1. Work out the flat EMI. At 5.5% flat on ₹8,00,000 for 5 years, interest is ₹8,00,000 × 5.5% × 5 = ₹2,20,000, so the EMI is ₹10,20,000 ÷ 60 = ₹17,000.
2. Enter ₹8,00,000 and 5 years, then raise the rate until the EMI reaches ₹17,000. That happens at about 10%.

So the 5.5% flat offer is really about 10% on a reducing balance. A bank offer at 9.5% reducing, with an EMI of ₹16,801, is the cheaper of the two by about ₹11,900 over the loan. Compare offers on EMI and total repayment, never on the headline rate.

For a used car, enter the rate you are actually quoted. If a lender offers ₹4,00,000 at 12%, the EMI is about ₹13,286 over 3 years (interest about ₹78,300) or about ₹10,534 over 4 years (interest about ₹1.06 lakh).

The EMI is only part of what the car costs you each month. Add insurance renewals, fuel or charging, servicing, tyres and parking, and remember the loss in resale value. If the lender has added an insurance policy or an extended warranty to the loan amount, include it in the principal you enter so the EMI matches your schedule.