Car Loan EMI Calculator

Understanding the result

The loan is the on-road price less your down payment. A bigger down payment lowers both the EMI and the total interest. Total cost of the car adds the down payment to every EMI: what the car costs you with the loan, before fees.

Some lenders take the first EMI the day the loan is paid out — an EMI in advance. Each EMI is then a little smaller and the loan costs less interest, because you repay it a month sooner: in effect you receive the loan less the first EMI. The interest rate is the same.

Car loans usually run three to seven years. A car loses value while you pay for it, so a long tenure can leave you owing more than the car is worth in the early years.

How to use it

• On-road price — the ex-showroom price with registration, insurance and other charges, as the dealer quotes it. It opens at ₹ 10,00,000.
• Down payment — what you pay upfront, in rupees (₹) or as a percentage of the price (%). It opens at 20%; switching the unit keeps the amount. Under the field are the other form and the loan you borrow. A down payment always leaves at least ₹ 1,000 to borrow. To start from a loan the dealer quoted, enter it as the price with no down payment.
• Annual interest rate — the yearly rate your lender quotes on a reducing balance, from 0.1% to 50%.
• Loan tenure — in years (1 to 50) or months (1 to 600). Switching the unit keeps the length: 10 years becomes 120 months, and months round to the nearest year.
• First EMI — the month and year of EMI no. 1. It opens on next month, and dates the schedule.
• EMI paid — In arrears, the first EMI a month after the loan is paid out, or In advance, the first EMI the day it is paid out, so First EMI is that month. An EMI in advance carries no interest; each later EMI pays the interest for the month since the one before.

The results beside these show the monthly EMI, the total interest and the total you repay, and the total cost of the car: the down payment and every EMI, with a chart of principal against interest. Add prepayments opens one extra payment and shows what it changes.

• How often — monthly, yearly or one-time. It opens on yearly.
• Prepayment — the extra amount, paid on top of the EMI. It opens at ₹ 20,000; an empty field prepays nothing.
• From EMI no. — the EMI the first prepayment is paid with, as numbered in the # column of the schedule; later ones follow every month or every 12 months. For a one-time prepayment the field reads At EMI no. It opens at 12, the twelfth EMI, and the month that EMI falls in shows below it.
• After a prepayment — Reduce tenure keeps the EMI and ends the loan sooner; Reduce EMI keeps the tenure and lowers the EMI.

For a loan already running, enter the balance still owed and the tenure left, so EMI no. 1 is your next EMI.

Beside the prepayment the tool shows the interest saved, when the loan is paid off or what the EMI falls to, the total prepaid and the total interest with prepayments. The amortization schedule lists every month's date, opening balance, EMI, extra payment, interest, principal and closing balance, with the months of a prepayment highlighted. Yearly sums it into years: the EMIs paid, extra payments, interest and principal of each year, and its closing balance. Loan Year counts twelve months from the first EMI, Calendar runs January to December and Financial runs April to March, the year income-tax claims follow. A first or last year shorter than twelve months shows how many it covers. Export CSV downloads the view shown.

How the EMI is calculated

Interest is charged each month on the balance still owed, so early EMIs are mostly interest and later ones mostly principal. The EMI stays the same throughout, which is why the schedule shows the interest part shrinking month by month.

A prepayment is counted with that month's EMI: it comes off the month's closing balance, and interest is lower from the next month. Under Reduce tenure the EMI stays and the last instalment is whatever clears the balance. Under Reduce EMI the EMI is worked out again after each prepayment, on the balance left over the months left. A prepayment larger than the balance is cut to the balance and closes the loan.

The EMI is rounded to the nearest rupee. Total interest and total payment use the exact EMI, so they can differ by a few rupees from adding up the rounded monthly figures.

Interest is charged in whole months. When a loan is paid out partway through a month, lenders charge interest for the extra days separately (broken-period interest); that is not included.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P = loan amount, r = annual rate ÷ 12 ÷ 100, n = tenure in months

Interest saved = total interest with no prepayments − total interest with them

EMI in advance = EMI ÷ (1 + r)

Examples

Car loan EMIs at 9%

Charges for prepaying

The interest saved is shown before any charge your lender makes for prepaying. Ask your lender whether a part-payment shortens the tenure or lowers the EMI; the tool shows both.

For loans sanctioned or renewed on or after 1 January 2026, the Reserve Bank of India bars banks, co-operative banks and NBFCs from charging for the prepayment of a floating-rate loan given to an individual for a purpose other than business. That holds for a part or a full prepayment, from any source of funds, with no minimum lock-in period.

On other loans, a fixed-rate loan among them, a charge follows the lender's own policy and is based on the amount prepaid. It applies only if the sanction letter and loan agreement state it.

Sources

• Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 (RBI/2025-26/64) — Reserve Bank of India

Reviewed 10 October 2026

Frequently asked questions

See also

• EMI Calculator — for any other loan, with the same prepayment options.