Car Loan Calculator India
A car loan calculator shows the monthly EMI, the total interest and whether the car fits your salary. Enter the car price, down payment, rate, tenure and your monthly salary.
How the Car Loan Calculator India works
The loan is the car price minus your down payment. The EMI uses the standard reducing-balance formula, so each month's interest is charged only on what you still owe.
The calculator then runs two checks. It flags an EMI above 30% of your monthly salary as a caution, and above 40% as too high.
It also flags a car priced above six times your monthly salary, which is half a year's pay. Car loans run 3 to 7 years in this tool.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- P = car price − down payment
- r = yearly interest rate ÷ 12 (as a decimal)
- n = tenure in months
Worked example: ₹10 lakh car, 20% down, 9.5% for 5 years
- Down payment = ₹2,00,000, so the loan is ₹8,00,000.
- EMI = ₹16,801 for 60 months, with total interest of ₹2,08,089.
- On a ₹1,80,000 monthly salary, the EMI is 9.3% of pay, well under the 30% caution mark.
- Six times salary is ₹10.8 lakh, so the ₹10 lakh car passes the price check too.
Car loan EMI at 9.5% a year (assumed rate)| Loan | 3 years | 5 years | 7 years |
|---|
| ₹5 lakh | ₹16,016 | ₹10,501 | ₹8,172 |
| ₹8 lakh | ₹25,626 | ₹16,801 | ₹13,075 |
| ₹10 lakh | ₹32,033 | ₹21,002 | ₹16,344 |
| ₹15 lakh | ₹48,049 | ₹31,503 | ₹24,516 |
Illustrative, assuming a constant rate. Actual returns and rates vary.
Tips
- A bigger down payment cuts both the EMI and the total interest. Aim to fund running costs from salary, not the loan.
- A shorter tenure costs less overall. Pick the shortest one whose EMI stays under 30% of your pay.
- Dealer and some used-car loans quote a flat rate. Convert it to the reducing rate before you compare offers.
- Insurance, fuel and servicing come on top of the EMI. Budget for them before you choose the car.
Want to know if your whole plan is on track? Get your free money score in about two minutes. No PAN, no Aadhaar.
About the Car Loan Calculator India
Free car loan calculator for India. See your Equated Monthly Instalment (EMI), the total interest and whether the car fits your monthly salary.
Frequently asked questions
- How is car loan EMI calculated?
- Car loan EMI uses principal, interest rate, and tenure on a reducing-balance schedule.
- How much car can I afford on my salary?
- A common rule is to keep the car EMI under 10–15% of take-home pay and the car's price under about half of your yearly income.
- Should I pick a longer car loan tenure?
- A longer tenure lowers the EMI but raises the total interest, and cars lose value fast. 3–5 years is usual.