How to use the car loan calculator
- Enter the Car price (on-road), including any taxes and registration you will finance.
- Enter your Down payment.
- Enter the Interest rate (per year) from the loan offer.
- Set the Tenure in years (up to 10).
- Choose your currency, then read the monthly EMI, total interest, total payment and total cost of ownership. Scroll down for the year-by-year chart and the month-by-month schedule, which you can download as a CSV file.
What it does and when to use it
A car loan offer usually leads with the monthly payment. That number alone hides the real cost, because a longer term makes almost any car look affordable. This calculator shows three numbers side by side: what you pay each month, what you pay in interest, and what the car costs you in all.
Use it before you visit a dealer, to set a budget you can live with. Use it again with each loan offer, keeping the price the same, to see which rate and term really costs less. To see how extra payments would shorten the loan, try the Loan Prepayment Calculator. For a detailed schedule of any loan, the Amortization Schedule tool goes further.
How it works
- Loan amount = car price − down payment.
- Monthly rate r = yearly rate ÷ 12 ÷ 100, and n = tenure in years × 12.
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). At a 0% rate, the EMI is simply P ÷ n.
- Each month, interest = balance × r. The rest of the EMI repays the loan.
- Total cost of ownership = down payment + EMI × n.
As the CFPB explains, early payments on an amortizing auto loan go mostly to interest and later ones mostly to the balance. The schedule shows this month by month. Everything runs in your browser.
Worked examples
A ₹10 lakh car with ₹2 lakh down. Borrowing ₹8,00,000 at 9% for 5 years gives Monthly EMI: ₹16,606.68. Total interest is ₹1,96,401.05. Adding the down payment, the total cost of ownership is ₹11,96,401.05.
The same loan over 5 or 7 years. A $35,000 car with $5,000 down leaves $30,000 to borrow at 7%.
| Tenure | Monthly payment | Total interest |
|---|---|---|
| 5 years | $594.04 | $5,642.16 |
| 7 years | $452.78 | $8,033.55 |
The longer term saves $141.26 a month but costs $2,391.39 more in interest.
Limits and tips
- The rate is assumed to stay the same for the whole loan.
- Processing fees, insurance and dealer add-ons are not included. Ask for them in writing.
- Compare offers using the same price, down payment and tenure, so only the rate changes.
- If you are also weighing a home loan, the Home Loan EMI Calculator uses the same method.
Frequently asked questions
How is a car loan EMI calculated?
Is a longer tenure better?
How does a bigger down payment help?
Does the total cost include insurance and fees?
What if my lender quotes a flat rate?
Sources
- What is amortization and how could it affect my auto loan? — Consumer Financial Protection Bureau, accessed 2026-10-03
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