Car Loan EMI Calculator

EMI on an ₹8 Lakh, ₹10 Lakh and ₹15 Lakh Car

The three price points car buyers anchor on, financed at the terms banks quote first — 20% down, 9% interest, 5 years.

Financing the full on road price, minus the down payment. Move the sliders in the calculator for your own price, rate and tenure.

Car Loan EMI per ₹1 Lakh Borrowed

The classic bank-branch table, computed live: the monthly EMI on every ₹1,00,000 of loan. Multiply by the lakhs you borrow — a ₹8.00 Lakh loan at 9% over 5 years is 8 × ₹2,076 ≈ ₹16,608, against the exact ₹16,607 the calculator gives.

Down Payment Calculator: How Much Should You Put Down?

Lenders will happily finance 90–100% of the car; that doesn't make it a good idea. The table reruns the same car at 10%, 20% and 30% down so you can see exactly what each extra rupee of deposit buys — a smaller EMI now and less interest overall.

There are two ways to make a ₹10,00,000 car feel affordable: stretch a 10%-down loan to 7 years (EMI ₹14,480, total interest ₹3,16,339) or put 30% down over 5 years (EMI ₹14,531, total interest ₹1,71,849). The second route costs ₹1,44,490 less in interest — the deposit does the work, not the tenure.

Car Loan Eligibility: An Honest Estimate

This is an estimator, not a pre-approval — banks also weigh your credit score, employer and repayment history. What it does reproduce is the arithmetic every lender starts with: FOIR, the rule that all your EMIs together shouldn't cross 40–50% of take-home pay. We compute at the 45% midpoint; a conservative lender sits nearer 40%.

Car Loan Eligibility for ₹25,000 to ₹1 Lakh Monthly Salary

The short answer, assuming no existing EMIs: a ₹25,000 take-home salary supports a car budget near ₹6.70 Lakh, ₹40,000 about ₹10.80 Lakh, ₹50,000 about ₹13.50 Lakh and ₹60,000 roughly ₹16.20 Lakh. Lenders work top-down from your payslip, and this table shows the whole chain at 9% over 5 years: FOIR sets the affordable EMI, the inverse EMI formula converts it to a maximum loan, and a 20% deposit on top sets the car-budget ceiling.

No existing EMIs assumed. Every rupee of existing EMI subtracts from the affordable EMI directly — the estimator above takes yours into account.

How Car Loan EMI Is Calculated

Every lender prices a reducing-balance car loan with the same formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100, so 9% becomes 0.0075) and n the tenure in months.

On the default example — ₹8,00,000 (₹8.00 Lakh) borrowed at 9% for 5 years (n = 60) — that works out to ₹16,607 a month. Each instalment first covers the month's interest on the outstanding balance and only the remainder retires principal, which is why the amortization schedule starts interest-heavy and flips as the balance shrinks. The rate itself is the lever worth shopping — our car loan interest rates guide tracks where banks and NBFCs currently stand.

Flat Rate vs Reducing Rate: The Quote That Isn't

A flat-rate quote charges interest on the original ₹8.00 Lakh for the entire term: at a flat 9% over 5 years that is ₹3,60,000 of interest and a ₹19,333 instalment. The reducing-balance loan this page computes charges interest only on what is still owed — ₹1,96,396 on the same numbers, ₹1,63,604 less. As a rule of thumb a flat rate understates the true cost by 1.7–1.9×, so when a finance desk quotes a suspiciously low percentage, ask which type it is before comparing anything.

Why the Loan Should Be Sized on the On Road Price

Ex-showroom is the sticker; on road is the cheque you actually write — road tax, registration, insurance and TCS typically add 10–20% on top. Banks will finance 80–100% of the on road price, so an EMI planned on the ex-showroom figure quietly understates the loan you end up signing for. Get the itemized estimate for your car and city with the on road price calculator — it hands the number straight into this page.

Down Payment Strategy: Put Down More, Not Longer

The 20% rule is about depreciation, not bank policy: a new car sheds value fastest in its first two years, and a thin deposit means owing more than the car is worth for much of that time. A bigger down payment attacks both the loan and every month's interest, while a longer tenure only lowers the instalment and grows the total — the ₹1,44,490 gap in the comparison above is that difference made concrete. If 20% down feels out of reach, treat it as a signal about the budget rather than a financing problem to engineer around — the down payment guide works through the trade-offs case by case.

FOIR: The Rule Banks Use to Size Your Loan

FOIR — fixed obligation to income ratio — is the share of take-home pay already committed to EMIs, and lenders cap it around 40–50% including the loan you're applying for. On a ₹60,000 take-home with no other EMIs, the 45% midpoint allows ₹27,000 a month — about ₹13.00 Lakh of loan at 9% over 5 years. Credit-card minimum dues and BNPL instalments count against FOIR at most banks while rent generally doesn't, so clearing small EMIs before applying raises your ceiling immediately.

Prepayment Rules for Car Loans

Most car loans are fixed-rate, where lenders may levy a foreclosure charge on the outstanding amount — commonly a few percent, and frequently waived once the loan is two or three years old; the schedule of charges in your agreement is the deciding document. Timing matters more than the charge: interest is front-loaded, so in the default schedule above, clearing the balance at the end of year 2 skips roughly ₹75,609 of the remaining interest. Past the halfway mark most of the interest has already been paid, and prepayment buys progressively less. The car loan prepayment guide covers the paperwork and the part-payment vs foreclosure decision.

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