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EMI

Car Loan Calculator

Calculate your monthly car loan payments, explore detailed amortization schedules, and evaluate the financial impact of 3-year, 5-year, and 7-year loan tenures.

Loan Details

₹
₹50,000₹1,00,00,000
%
1%24%
Yr
1 Yr10 Yr

Monthly EMI

₹16,607

5 year loan at 9% p.a.

Loan Amount

₹8,00,000

Total Interest

₹1,96,401

Total Payable

₹9,96,401

Total Cost₹9,96,401
Principal Loan
₹8,00,000
80.3%
Total Interest
₹1,96,401
19.7%

Tenure Comparison for ₹8,00,000 at 9%

TenureMonthly EMITotal InterestTotal Payable
3 Years₹25,440₹1,15,832₹9,15,832
5 YearsSelected₹16,607₹1,96,401₹9,96,401
7 Years₹12,871₹2,81,186₹10,81,186

Estimates only. Actual interest and EMI may vary depending on lender.

How Car Loan Repayment Schedules Work

Car loans in India are repaid through Equated Monthly Installments (EMIs) calculated on a monthly reducing balance framework.

Every installment you pay is divided between paying off accrued monthly interest and reducing your principal loan balance. Because the principal reduces each month, the interest component gradually decreases, while the principal repayment component accelerates over time.

Tenure Comparison Matrix: 3-Year vs. 5-Year vs. 7-Year Car Loans (at 9% p.a.)

Compare monthly installments and total interest liabilities across standard loan amounts:

Loan Tenure₹8 Lakh Loan EMI₹8 Lakh Total Interest₹15 Lakh Loan EMI₹15 Lakh Total Interest
3 Years (36 mos)₹25,445₹1,16,013₹47,709₹2,17,525
5 Years (60 mos)₹16,607₹1,96,420₹31,138₹3,68,287
7 Years (84 mos)₹12,842₹2,78,753₹24,079₹5,22,662
💡 Financial Insight: On a ₹15 Lakh loan, choosing a 7-year tenure reduces your monthly payment to ₹24,079, but increases your total interest to ₹5,22,662 — more than double the interest of a 3-year loan!

Frequently Asked Questions

How does a car loan repayment calculator work?▾
A car loan calculator determines your monthly Equated Monthly Installment (EMI) by processing the borrowed loan principal, annual interest rate, and repayment duration using the reducing balance method. It also shows the breakdown between principal and interest for each installment.
What is the standard car loan tenure in India?▾
The standard tenure for new car loans in India ranges from 3 years (36 months) to 7 years (84 months). 5-year (60 months) loans are the most popular choice, offering a balanced combination of affordable EMIs and moderate total interest outflow.
Should I choose a fixed or floating interest rate for my car loan?▾
Most retail car loans in India are sanctioned on a fixed interest rate basis, meaning your EMI remains identical throughout the entire loan tenure regardless of RBI repo rate changes. Floating-rate auto loans are rarer and subject to market rate cycles.
What hidden charges are associated with car loans in India?▾
Beyond the interest rate, car loan borrowers must budget for: 1) Loan processing fee (0.5%–1.5% of loan amount + 18% GST), 2) Documentation charges (₹500–₹2,000), 3) State stamp duty on loan agreement, and 4) Hypothecation (HP) endorsement fee on the vehicle Registration Certificate (RC).
How does early part-prepayment save interest on a car loan?▾
Any prepayment made towards your car loan principal directly reduces the outstanding balance upon which monthly interest is calculated. Prepaying in the first 1 to 2 years saves the maximum interest because early installments are interest-heavy.
What happens after I finish paying off my car loan?▾
Upon full repayment, your bank will issue a Loan Closure Letter and Form 35 (No Objection Certificate - NOC). You must submit Form 35 to your regional RTO to remove the bank's Hypothecation (HP) endorsement from your vehicle's smart card RC.