Car Loan EMI Calculator
Monthly EMI · Total Interest · Real Cost of Your Car
Enter the car's on-road price, your down payment, interest rate and tenure. Get the exact monthly EMI and see what the car truly costs you — down payment, all EMIs, and processing fee combined.
Loan Parameters
Loan amount = ₹ 8,00,000 (80% of car price)
One-time charge by lender; included in total cost
Amortization Schedule
Formula
EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]
P = loan amount (price − down payment) · r = monthly rate · n = months
Monthly EMI
₹ 16,801
for 60 months at 9.5% p.a.
Total Cost of Car
₹ 2,13,089 more than on-road price (21.3% premium)
Principal vs Interest
Quick Metrics
How Car Loan EMI is Calculated
Your monthly EMI covers both the interest on the outstanding loan and a portion of the principal. The formula is EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the loan amount (on-road price minus down payment), r is the monthly interest rate, and n is the tenure in months.
A higher down payment directly reduces P — lowering both the EMI and the total interest you pay. Car loan interest rates (9–12%) are higher than home loan rates and are not tax-deductible, so paying a larger down payment is usually the most cost-effective choice for most buyers.
The total cost of your car is the sum of the down payment, all EMIs paid over the tenure, and the processing fee — which can be 20–25% more than the on-road price for a fully financed, long-tenure loan.
Car Loan Rates — Major Banks (2025–26)
| Bank / NBFC | Rate (p.a.) | Max Tenure | Max Financing |
|---|---|---|---|
| SBI | 8.85% – 12.85% | 7 years | 90% on-road |
| HDFC Bank | 9.40% – 13.55% | 7 years | 100% ex-showroom |
| ICICI Bank | 9.00% – 13.00% | 7 years | 100% on-road |
| Axis Bank | 9.25% – 13.75% | 7 years | 90% on-road |
| Kotak Bank | 9.00% – 14.00% | 7 years | 90% on-road |
| IDFC FIRST | 9.50% – 15.00% | 7 years | 100% on-road |
Indicative rates as of 2025–26. Actual rate depends on credit score, loan amount and car model. Always verify with your lender.
Frequently Asked Questions
What is the current car loan interest rate in India?
New car loan rates range from around 8.85% (SBI) to 15% (NBFCs) p.a. as of 2025–26. Your exact rate depends on your CIBIL score, the car model, the lender, and whether it's a new or used car. A score above 750 generally qualifies you for the best rates.
How much down payment should I pay?
Most lenders require a minimum 10–20% down payment. Paying 30–40% significantly reduces your EMI and saves lakhs in interest, especially at high rates. Unlike home loans, car loan interest is not tax-deductible, so a larger upfront payment is almost always the better financial choice.
What is the maximum tenure for a car loan?
Most banks offer up to 7 years for new cars. The 5-year tenure is most common — it balances a manageable EMI with reasonable total interest. Longer tenures reduce EMI but substantially increase the total interest paid.
Does a car loan affect my CIBIL score?
Yes. Timely EMI payments improve your CIBIL score over time; missed or late payments damage it. A new car loan also temporarily lowers your score slightly when it first appears (new credit inquiry). Consistent on-time payments for 12–24 months typically result in a net improvement.
Can I foreclose a car loan without penalty?
Unlike home loans, car loan foreclosure charges are not regulated by RBI — each lender sets its own policy. Most banks charge 2–6% of the outstanding principal as a foreclosure fee. Some allow part-prepayment for free after a lock-in period (typically 6–12 months). Check your loan agreement before prepaying.