Car loan EMI calculator

How the car loan EMI calculator works

A car loan EMI is the fixed monthly payment on a vehicle loan, and it depends on the loan amount, which is the on-road price minus the down payment you make upfront. Most car calculators ask for a loan amount and leave you to work out that subtraction yourself. This one starts where you start, at the price on the invoice, takes your down payment as a percentage, and derives the loan, the EMI, the total interest and the full cost of buying on finance.

Work the default. A ₹10,00,000 car with 20% down means ₹2,00,000 paid upfront and a ₹8,00,000 loan. At 9.5% over 7 years the EMI is ₹13,075, you pay ₹10,98,300 across the 84 months, and ₹2,98,300 of that is interest. Add a 1% processing fee of ₹8,000 and the all-in cost of the car, counting your down payment, comes to ₹13,06,300.

What the down payment does to the EMI

The down payment is the slice of the on-road price you pay from your own pocket, so raising it shrinks the loan and every EMI and rupee of interest that follows. It's the lever most buyers underuse. On the same ₹10,00,000 car at 9.5% for 7 years, the difference between putting 10% and 30% down is a full ₹2,00,000 of loan, and the EMI and total interest drop in step.

The live table above runs the same rungs at whatever rate and tenure you set, and the month-by-month schedule under it shows every payment of the loan you choose, splitting each one into interest and principal. You can download the whole schedule as a CSV or an Excel file. If a bigger upfront cheque is within reach, this is where you see what it buys you over the life of the loan.

The EMI at a common car price

At the same rate and tenure the EMI scales almost exactly with the loan, so a car twice the price costs twice the month. On the page defaults, 20% down over 7 years at 9.5%:

Read the interest column rather than the EMI column. A ₹20,00,000 car on these terms costs ₹5,96,600 in interest alone, which is more than the whole loan on a ₹7,00,000 car. Change the rate, the tenure or the down payment above and the schedule below reruns on your numbers.

Checking an EMI you have been quoted

An EMI is worth checking even when a bank published it. ICICI Bank's own car loan page states that "with a 9% interest rate for a 5-year tenure, the approximate EMI for a Car Loan of ₹10 lakh would be around ₹20,196". On those inputs the EMI is ₹20,758.

The gap is ₹562 a month, and it is not a rounding difference:

• Solving backwards, ₹20,196 is the EMI for a rate of 7.83%, not the 9% stated.
• Paying ₹20,196 for 60 months on ₹10,00,000 at 9% leaves ₹42,415 still owing at the end. Paying ₹20,758 clears it.

The check takes a moment and needs no formula. Multiply the EMI by the number of months and compare it with the loan. If the total is less than what you borrowed plus plausible interest, the figure is wrong, whoever printed it.

New car or used car

A used or second-hand car loan is priced higher than a new-car loan, usually 12% to 20% a year against 7.5% to 12%, because an older car is weaker security for the lender. Switch the car type to used and the calculator reminds you of the higher rate band and the tighter financing cap. Used-car lenders also cap the vehicle age, commonly around 14 years by the time the loan ends, so a ten-year-old car may only get a three or four year term.

Rates move with your credit score and income too. A score above 750 tends to fetch the bottom of the band, while a thin credit file pushes you toward the top, so the rate your bank finally quotes is the one to type in here.

How much a bank will finance

Banks finance up to about 90% of the on-road price on a new car and closer to 80% on a used one, which sets the minimum down payment you must bring. The calculator shows the maximum financing for your car, so if you enter a down payment below the lender floor, you can see the gap at once. On a ₹10,00,000 new car the cap is around ₹9,00,000, leaving a minimum of ₹1,00,000 down.

A handful of lenders advertise 100% on-road funding for salaried buyers with a strong profile, but that's the exception, and it means borrowing the RTO and insurance cost too. Financing every last rupee maximises the interest you pay, which the all-in cost figure lays bare.

What your salary supports

Lenders size a car loan against the FOIR, the fixed obligations to income ratio, and for vehicle finance that lands between 45% and 55% of net monthly income, with 50% the usual working figure. At 9.5% over 7 years with 20% down, that ceiling looks like this:

These are arithmetic ceilings, not recommendations, and three things pull the real number down:

• Any EMI you already pay comes out of the same 50% first. A running loan of ₹5,000 halves what a ₹20,000 income has left for a car.
• Lenders set their own minimum income floors, and they are low: Indian Overseas Bank asks for ₹8,000 a month in total household income.
• Half of a modest salary going to a car leaves nothing for its running cost, and fuel, insurance and servicing are not in any EMI.

So treat the top row as what a lender might approve rather than what is comfortable. The personal loan calculator applies the same FOIR test to unsecured borrowing, where the rate is far higher.

What this does not promise

The EMI here uses the reducing-balance math every bank applies, and the loan is derived cleanly from the price and your down payment. A real car loan can still carry documentation charges, a higher or lower processing fee than the default, and dealer or manufacturer subvention schemes that change the effective rate. Rates and financing caps vary by lender and by your credit profile, and approval is never guaranteed by a calculator. Treat this as a planning tool, not financial advice, and confirm the on-road price, the rate and the fees with the dealer and your bank before you sign. Where the loan is not for a car at all, the same reducing-balance sum without the vehicle assumptions is the plainer starting point, and paying a lump sum into the balance shows what a bonus would buy you in saved interest.

Frequently asked questions

What is a car loan EMI calculator? A car loan EMI calculator works out the monthly installment on a vehicle loan, and this one starts from the on-road price and your down payment rather than a loan amount. On a ₹10,00,000 car with 20% down, the ₹8,00,000 loan at 9.5% over 7 years has an EMI of ₹13,075 and about ₹2,98,300 of total interest.

How does the down payment change the EMI? The down payment is the part of the on-road price you pay upfront, so a bigger down payment means a smaller loan and a smaller EMI. On a ₹10,00,000 car at 9.5% for 7 years, moving from 10% down to 30% down cuts the loan from ₹9,00,000 to ₹7,00,000 and the EMI falls with it, as the EMI-by-down-payment table shows.

What is the car loan EMI formula? The EMI formula is EMI = P times r times (1 + r) to the power n, divided by (1 + r) to the power n minus 1, where P is the loan amount, r is the monthly rate (the annual rate divided by 12 and by 100) and n is the tenure in months. The loan amount P is the on-road price minus your down payment, and interest is charged on the reducing balance.

What interest rate do car loans charge? New-car loan rates in India run about 7.5% to 12% a year, while used or second-hand car loans are higher at roughly 12% to 20%, because an older car is a weaker security. The exact rate depends on your credit score, income and the lender, so enter the rate your bank quotes.

What is the EMI for a 10 lakh car? On the page defaults, a ₹10,00,000 car with 20% down is an ₹8,00,000 loan, and at 9.5% over 7 years the EMI is ₹13,075 with ₹2,98,300 of total interest. At the same rate and tenure a ₹5,00,000 car runs to ₹6,538 a month, a ₹15,00,000 car to ₹19,613 and a ₹20,00,000 car to ₹26,150. Shorten the tenure and the EMI rises while the interest falls.

How much car loan can I get on a 25,000 salary? Lenders cap the total of your EMIs near 50% of net monthly income for vehicle finance, so a ₹25,000 salary leaves about ₹12,500 for an EMI, which supports roughly a ₹7,64,808 loan at 9.5% over 7 years, or a car of about ₹9,56,010 with 20% down. That is a ceiling rather than a recommendation: any EMI you already pay comes out of the same 50% first, and the running cost of the car is on top.

How do I check an EMI a dealer or bank has quoted? Multiply the EMI by the number of months and compare it with what you are borrowing. Published figures are not always right: ICICI Bank's car loan page gives ₹20,196 as the EMI on ₹10,00,000 at 9% over 5 years, where the correct figure is ₹20,758, and paying ₹20,196 for 60 months would leave ₹42,415 still owing.

How much of the car price will a bank finance? Banks typically finance up to about 90% of the on-road price of a new car, so you put down at least 10%, and used cars are financed at a lower share, near 80%. The calculator shows the maximum financing for your car so you can see whether your down payment clears the lender minimum.

Can I get a car loan with no down payment? Some lenders advertise up to 100% on-road funding for salaried buyers with a strong credit profile, but most cap financing near 90% of on-road price for a new car, so a zero down payment is the exception. A larger down payment lowers the EMI and the total interest, which the sensitivity table makes clear.

How is a used car loan different? A used car loan carries a higher interest rate, about 12% to 20%, a lower financing cap near 80% of value, and a shorter tenure, because lenders also cap the vehicle age at around 14 years at the end of the loan. Switch the car type to used in the calculator to reflect the higher rate and cap.

What does the processing fee add? A car loan carries a one-off processing fee, usually around 0.5% to 1% of the loan, charged when the loan is sanctioned. On a ₹8,00,000 loan a 1% fee is ₹8,000, and the all-in cost figure folds your down payment, every EMI and this fee into a single outflow.

Sources

• BankBazaar, car loan interest rates by lender, updated 12 September 2026
• Union Bank of India, car loan EMI calculator and rate
• ICICI Bank, car loan EMI calculator
• BankBazaar, Indian Overseas Bank car loan eligibility and income floor
• ClearTax, car loan EMI calculator and current rate ranges
• ClearTax, SBI car loan rates and 90% on-road financing
• Cars24, used car loan rates and vehicle-age cap
• Reserve Bank of India, lending and interest rate framework