Auto Loan Calculator

Use the standard EMI formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Take the on-road price, subtract your down payment and any trade-in value, and that's your loan amount. Example: car costs ₹10 lakh, you put down ₹2 lakh, so the loan is ₹8 lakh. At 9.5% for 5 years, monthly rate r = 0.00792 and n = 60. The EMI works out to about ₹16,793. Total interest over 5 years comes to roughly ₹2.08 lakh. The calculator handles it in seconds with your actual numbers.

A 15-20% down payment is the sweet spot for most car buyers. On a ₹10 lakh car, that's ₹1.5 to ₹2 lakh upfront. Less than 10% means you might end up owing more than the car is worth in the first year, since cars depreciate fast. More than 25% is fine if you have the cash, since it cuts your EMI and total interest. But don't drain your emergency fund just to put more down. Keep at least 6 months of expenses in liquid savings. The calculator shows you how each down payment level changes the EMI.

Trade-in value works exactly like a down payment — it reduces the amount you need to finance. Say the new car costs ₹12 lakh and the dealer gives you ₹3 lakh for your old one. Your loan is now on ₹9 lakh, not ₹12 lakh. At 9.5% over 5 years, that drops your EMI from about ₹25,189 to ₹18,892 — a saving of around ₹6,300 a month. Always negotiate the trade-in price separately from the new car price. Bundled deals often hide a low trade-in valuation.

A 60-month loan saves you a lot of interest, but the EMI is heavier. A 72-month loan eases monthly cash flow but you pay much more overall, and you risk being "underwater" — owing more than the car is worth — for longer. On an ₹8 lakh loan at 9.5%: 60 months gives an EMI of ₹16,793 with total interest of ₹2.08 lakh. 72 months gives ₹14,609 EMI but ₹2.52 lakh total interest. Cars depreciate fast, so I usually recommend 60 months unless your budget genuinely needs the breathing room.

Total interest = (EMI × number of months) − principal. On a ₹6 lakh car loan at 9.5% for 5 years, EMI is roughly ₹12,595. Multiply by 60 and you've paid ₹7,55,700, so interest is about ₹1,55,700. Auto loan rates in India typically range from 8.5% to 11% depending on the bank, your credit score, and whether the car is new or used. Used cars carry higher rates — often 12-15%. The calculator gives you the total interest figure instantly when you enter loan amount, rate, and tenure.

In India, on-road price already bundles ex-showroom price, GST, road tax, registration, and insurance. The bank usually finances 80-85% of the on-road price, sometimes only the ex-showroom. Insurance and extended warranty can sometimes be added to the loan, but doing that means paying interest on them for years — a bad idea. Pay those upfront if you can. Always ask the dealer for a written breakdown of every charge before signing. Hidden fees like handling charges or "logistics" are negotiable. Run the actual loan amount through the calculator to see your true EMI.

Yes, refinancing a car loan can lower your payment if interest rates have dropped or your credit score has improved since you took the loan. The catch: most lenders charge a 2-4% prepayment penalty on auto loans, plus the new lender may charge processing fees. Run the math first. If your existing rate is 11% and you can refinance at 9%, the savings can be real — especially if you still have 3+ years left. If you have less than 18 months remaining, refinancing usually isn't worth it. Use the calculator to compare both scenarios.