Car Loan EMI Calculator
Often quoted as a flat rate at the dealership. Convert it before you compare.
Enter your loan details
Add a loan amount, interest rate and tenure to see your EMI, schedule and savings. Or tap Defaults to start from typical values.
Outstanding balance over time
Yearly split of what you pay
In the yearly view, tap a year to see its months. Amounts are rounded to the nearest rupee.
Plan your prepayments
Balance with and without prepayment
Be debt-free by a date
Pay a little extra every month
Prepay or invest?
Got a lump sum? Compare prepaying it with investing it, both measured when the loan would have ended anyway.
What if your floating rate changes?
Rate sensitivity
Balance after the rate change
Which offer is really cheapest?
Enter up to three quotes for . Fees are included, and flat rates are converted, so the comparison is fair.
Flat rate vs reducing rate
Got two quotes, one flat and one reducing? Enter both to see which is really cheaper for your amount and tenure.
Flat-rate conversion table
Should you switch lenders?
How much can you borrow?
Lenders call this FOIR (fixed obligations to income ratio). Most allow 40–60% depending on income. The rate and tenure come from Loan details.
Car Loan guide
What to understand before you choose. Rules and rates change, so confirm with your lender. Last reviewed: .
Flat rate vs reducing rate: the dealer trap
A flat rate charges interest on the full original amount for the whole tenure, even though you repay part of it every month. A reducing rate charges interest only on what you still owe.
A 6% flat rate over 5 years costs about the same as an 11% reducing rate. Always ask "is this flat or reducing?" and convert using the Flat vs reducing tab.
Smart car-loan rules of thumb
- 20/4/10 rule: put down at least 20%, keep the loan to 4 years or less, and keep all vehicle costs (EMI, fuel, insurance) under 10% of monthly income.
- Cars lose 15–20% of their value in the first year. A long tenure with a small down payment can leave you owing more than the car is worth.
- Most car loans are fixed-rate, so foreclosure charges (often 2–6%) may apply, especially in the first year or two. Read the schedule of charges.
- Dealer-arranged financing can hide subsidies or add-ons (insurance, extended warranty). Compare with a direct bank quote.
New vs used car loans
Used-car loans typically carry rates 2–5% higher and shorter tenures, because the collateral is worth less. Check True rate with processing fee in the Insights tab: fees on smaller loans add noticeably to the real cost.
How your EMI is split between interest and principal
Your EMI stays the same, but its make-up changes every month. Early on, most of it is interest, because interest is charged on a large balance. Later, most of it repays principal.
On a typical ₹8 lakh, 5-year car loan at 9.5%, about 35% of what you pay in the first year goes to interest. The insights show this for your numbers, along with the month when principal first overtakes interest.
Simple habits that save the most
- One extra EMI a year: on a typical ₹8 lakh, 5-year car loan at 9.5%, it closes the loan 5 mos early and saves about ₹17.1K in interest.
- Raise your EMI by 5% each year as your income grows: on the same loan that saves about ₹13.7K and finishes 5 mos early.
- Ask whether the rate is flat or reducing before comparing offers. A flat rate looks about half as expensive as it really is.
- Keep your credit score high (750+). It directly affects the rate you're offered.
- Check foreclosure charges before closing early. Fixed-rate loans often charge a percentage of the outstanding amount, so prepay when the saving clearly beats the fee.
Frequently asked questions
What is the EMI on a ₹8 lakh car loan at 9.5% for 5 years?
The EMI is ₹16,801 a month for 60 months. You would pay ₹2,08,089 in interest, ₹10,08,089 in total. Change the amount, rate or tenure above to see your own figures.
What does a 5.25% flat rate mean in reducing-rate terms?
Over 5 years, a 5.25% flat rate equals 9.58% on a reducing basis, about 1.8 times the quoted number, because flat interest is charged on the full amount even after you have repaid part of it. Always convert a flat rate before comparing it with reducing-rate offers.
How does the processing fee change the real interest rate?
A 1% fee on this car loan means you receive ₹7,92,000 but repay the same EMIs, so the true annual rate is 9.93% instead of 9.5%. Use the true rate to compare offers.
Can I prepay or close my car loan early?
Yes, but car loans are usually fixed-rate, and lenders may charge a foreclosure fee, often a percentage of the outstanding amount. Check the charge in your sanction letter or Key Facts Statement before prepaying.