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Car Loan EMI Calculator

Calculate your monthly car loan EMI for new or used vehicles. See total interest payable, cost breakdown, and full repayment schedule with current rates.

₹8.00 L
₹50.0K₹50.00 L
9%
130
5 Years (60 months)
17

Your Monthly EMI

₹16,607

per month for 5 years

Principal (80%)
Interest (20%)

Principal

₹8.00 L

₹8,00,000

Total Interest

₹1.96 L

₹1,96,420

Total Payment

₹9.96 L

₹9,96,420

For every ₹100 of principal, you pay

₹25 in interest

Total cost multiplier: 1.25x

EMI = P × r × (1+r)n / ((1+r)n - 1)
Where P = ₹8,00,000, r = 9%/12 = 0.7500%, n = 60 months

How It Works

1

Enter Loan Amount

Set your car loan amount — from ₹50,000 to ₹50 lakh. Typically 80–100% of on-road price for new cars.

2

Set Interest Rate & Tenure

Adjust the annual interest rate (typical: 8.5%–12%) and repayment tenure up to 7 years.

3

View Payment Schedule

See your monthly EMI, total interest cost, and complete year-wise amortization breakdown.

Car Loan Rates in India (2026)

New Car Loan: 8.50% – 10.50% p.a. (SBI: 8.50%, HDFC: 8.75%, ICICI: 8.90%, Bank of Baroda: 8.60%)

Used Car Loan: 11.00% – 16.00% p.a. (higher rates due to depreciation risk, shorter tenure)

Electric Vehicle Loans: 0.5–1% lower than regular car loans at most banks (government incentive)

Loan-to-Value: Up to 100% of ex-showroom price for new cars (some banks fund insurance too). Used cars: 70–80% of valuation

Typical tenure: 1–7 years. Most buyers opt for 5 years. Shorter tenure saves significant interest

Processing fee: 0.5%–1% of loan amount. Often waived during festive or manufacturer-sponsored offers

Zero-cost EMI offers from manufacturers are essentially pre-paid interest — compare with bank loans before choosing

Frequently Asked Questions

What is the EMI for a ₹10 lakh car loan?
At 9% interest for 5 years: EMI = ₹20,758/month. Total interest = ₹2,45,488. Total payment = ₹12,45,488. At 9% for 7 years: EMI = ₹16,089/month. Total interest = ₹3,51,459. Shorter tenure saves over ₹1 lakh in interest.
Should I take a longer or shorter car loan tenure?
Shorter is always better for car loans. Cars depreciate rapidly — a 7-year loan means you'll owe more than the car is worth for years. Aim for 3–5 years maximum. The interest savings are substantial: on a ₹10L loan at 9%, 5 years costs ₹2.45L in interest vs ₹3.51L for 7 years.
Is car loan interest tax-deductible?
No, car loan interest is not tax-deductible for personal use. However, if the car is used for business purposes and registered in the business name, the interest and depreciation can be claimed as business expenses.
Can I prepay my car loan?
Yes. Most banks allow prepayment after 6 months. Prepayment charges: 0–5% of outstanding (many banks charge zero for floating rate loans). RBI mandates no prepayment penalty on floating rate loans.
New car loan vs used car loan — which is cheaper?
New car loans have significantly lower interest rates (8.5–10.5%) vs used car loans (11–16%). However, a 2–3 year old used car costs 30–40% less. Run the numbers: the total cost (price + interest) of a used car with a higher rate is often still less than a new car with a lower rate.

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