Car Loan EMI Calculator
Enter your on-road price, down payment, rate and tenure — see your monthly EMI, total interest and a year-wise amortization schedule, live.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Year-wise amortization
How your EMI splits into principal & interest| Year | Opening balance | Principal paid | Interest paid | Closing balance |
|---|
Claim car interest + depreciation on your books
If the car is bought in a business or firm's name, we help you claim interest, depreciation and structure it right.
Disclaimer: Indicative estimate on a reducing-balance basis. Actual EMI may vary with processing fees, insurance funding, GST on charges and lender-specific terms. Not a loan offer.
How the car loan EMI is calculated
Your EMI is worked out on a reducing-balance basis using the standard EMI formula. First we find the loan amount — the on-road price minus your down payment — then apply the monthly rate over the full number of months.
Indicative car loan interest rates
Rates depend on the lender, your credit score, whether the car is new or used, and the loan tenure. Used-car loans and longer tenures usually carry higher rates.
| Loan type | Typical rate (p.a.) |
|---|---|
| New car — prime credit score (750+) | 8.5% – 9.5% |
| New car — average credit score | 9.5% – 11.5% |
| Used / pre-owned car | 11% – 16% |
| Electric vehicle (green loan schemes) | 8.0% – 9.5% |
Car loans & income tax
Whether a car loan saves you tax depends entirely on who owns the car and why. For a salaried person buying a personal car, there is no tax benefit — the treatment changes only when the car is a genuine business asset.
Business-use tax note
A personal car loan gives you no income-tax deduction — neither the EMI nor the interest is claimable. But if the car is bought for a business or profession (in the firm's/proprietor's name and used for work), you can claim the loan interest as a business expense and depreciation at 15% on the vehicle (higher rates such as 30% apply to commercial vehicles / certain EVs used in business). Note that GST paid on a car is generally not available as input tax credit (ITC) for personal use, so it becomes part of your cost.
Key terms explained
On-road price
The all-in cost to put the car on the road — ex-showroom price plus road tax, registration and insurance. Your loan is sized against this less the down payment.
Down payment
The upfront cash you pay yourself. A bigger down payment means a smaller loan, lower EMI and less total interest — many lenders fund only 80–90% of the on-road price.
Reducing balance
Interest is charged only on the outstanding principal, which falls each month. Early EMIs are mostly interest; later ones are mostly principal — as the amortization table shows.
Tenure vs interest
Stretching the tenure lowers each EMI but increases total interest paid. A shorter tenure costs more per month but is far cheaper overall.
Questions people ask
Short answers on Car Loan EMI Calculator. Tap a question to open it.
01How is a car loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the tenure in months. The tool also shows the total interest you will pay over the term.
02Can I claim tax benefit on a car loan?
A salaried individual cannot. If the car is used for business or profession, the interest is deductible as a business expense and depreciation can be claimed on the vehicle, provided it is held in the business's name and use is substantiated.
03Is there any deduction for an electric car loan?
Yes — section 80EEB allows a deduction of up to ₹1.5 lakh a year on interest for a loan taken to buy an electric vehicle, subject to the sanction-date conditions, and only under the old regime.
04Does a longer tenure make the car cheaper?
No. A longer tenure lowers the monthly EMI but increases the total interest paid. Compare the total outgo, not just the instalment.
05What extra costs should I budget beyond the EMI?
Down payment, road tax and registration, insurance, processing fee, and accessories or extended warranty. Lenders finance the ex-showroom price, so the on-road extras usually come out of your pocket.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.