Car Loan EMI Calculator
Secured against the vehicle, cheaper than a personal loan but on a depreciating asset.
- Monthly EMI
- ₹16,801
- Total interest
- ₹2,08,089
- Principal + interest
- ₹10,08,089
- Total cost
- ₹10,17,529
initial instalment · 5 yr to repay
20.6% of everything you repay
on ₹8,00,000 borrowed
includes ₹9,440 of fees
Your loan
Where your money goes
Over 5 yr, ending Sept 2031.
Total cost of this loan
₹10,17,529
- Principal₹8,00,000 79%
- Interest₹2,08,089 20%
- Fees & charges₹9,440 1%
Budget from the on-road price
Registration, road tax, insurance and accessories land on top of the showroom sticker. The loan only covers what is left after your down payment.
- Ex-showroom price
- ₹8,00,000
- Registration and road tax
- ₹1,20,000
- Insurance and accessories
- ₹40,000
- On-road cost
- ₹9,60,000
- Down payment (20% of on-road)
- −₹1,92,000
- Loan needed
- ₹7,68,000
Your loan amount is currently ₹8,00,000.
Your path to debt-free
Interest dominates the early years; principal takes over later.
Vehicle value vs outstanding loan
A car depreciates faster than the loan clears in the early years.
In 2026 you would owe up to ₹88.35 K more than the car is worth. A write-off that year pays out the car's value, not your balance.
Depreciation follows the IRDAI Insured Declared Value schedule. It is an assumption, not a valuation — a real car's worth depends on model, condition and mileage.
Pay it off early
The difference an extra payment makes
No extra payments in this plan.
Fees and charges
- Processing fee
- ₹8,000
- GST on fee
- ₹1,440
- Insurance
- ₹0
- Other charges
- ₹0
- Payable upfront
- ₹9,440
Amortisation schedule
| Year | Principal | Interest | Total paid | Balance |
|---|---|---|---|---|
| ₹31,654 | ₹18,751 | ₹50,404 | ₹7,68,346 | |
| ₹1,34,376 | ₹67,242 | ₹2,01,618 | ₹6,33,970 | |
| ₹1,47,712 | ₹53,905 | ₹2,01,618 | ₹4,86,258 | |
| ₹1,62,373 | ₹39,245 | ₹2,01,618 | ₹3,23,885 | |
| ₹1,78,488 | ₹23,130 | ₹2,01,618 | ₹1,45,398 | |
| ₹1,45,398 | ₹5,816 | ₹1,51,213 | ₹0 |
Before you sign for a car loan
Where it works for you
- Rates of 9-11% are well below an unsecured personal loan.
- Lenders fund 80-100% of the on-road price, so the down payment is small.
- Approval is quick and often arranged at the dealership.
- A shorter 3-5 year tenure means you clear the debt while the car still holds value.
What it costs you
- The car loses 15-20% of its value in year one but the loan balance falls far slower.
- No tax deduction unless the vehicle is used for business.
- The lender is the hypothecated owner until the final EMI is paid.
- Comprehensive insurance is mandatory for the whole tenure, adding to running costs.
- A long 7-year tenure can leave you owing more than the car is worth.
Who qualifies
- Age 21-65 with a valid driving licence.
- Net monthly income of ₹20,000-25,000+ for salaried applicants.
- Credit score of 700+; 750+ unlocks the best rates.
- 1-2 years in the current job or 2-3 years in business.
What you need to submit
- PAN, Aadhaar and driving licence.
- 3 months of salary slips or 2 years of ITRs.
- 6 months of bank statements.
- Proforma invoice or quotation from the dealer.
Ways to pay less
- Budget on the on-road price, not the ex-showroom price — insurance and registration add 10-12%.
- Keep the tenure to 5 years or less so the loan clears faster than the car depreciates.
- A larger down payment cuts the interest sharply; try lowering the loan amount slider to see it.
- Get the hypothecation removed from the RC within 30 days of your final EMI.
- Dealer finance is convenient but often 0.5-1% dearer than your own bank.
Questions people ask
At least 20% of the on-road price. A bigger down payment lowers both the EMI and the total interest, and it keeps you from owing more than the car is worth in the early years.