Car Loan EMI Calculator 2026

Calculate your monthly EMI, total interest, and view year-wise amortization schedule

Quick Calculate:

Loan Details

Rs. 50K Rs. 50L
5% 24%
6 months 84 months (7yr)
Your Monthly EMI
Rs. 16,789
Principal
Rs. 8,00,000
Total Interest
Rs. 2,07,340
Total Amount
Rs. 10,07,340

Payment Breakdown

Principal Interest

Interest is 20.6% of total payment

Year-wise Amortization Schedule

Year Opening Balance EMI Paid Principal Paid Interest Paid Closing Balance

Tips to Reduce Your Car Loan EMI

💰 Increase Down Payment

Increasing from 10% to 25% down payment reduces your loan amount significantly. On a Rs. 10L car, this saves Rs. 1.5L+ in interest.

📈 Improve CIBIL Score

A score of 750+ can get you 1-3% lower interest rate. Read our CIBIL improvement guide .

🏦 Compare Multiple Banks

Interest rates vary by 2-5% across banks. See our bank comparison for 2026 .

⏱ Choose Shorter Tenure

5 years vs 7 years on Rs. 8L loan at 10% saves Rs. 1.2L+ in total interest. Read our EMI guide .

💸 Make Prepayments

Even one lump-sum prepayment of Rs. 50K can save Rs. 15K-20K in interest over the remaining tenure.

📅 Time Your Application

Apply near quarter-end (March, June, Sep, Dec) when banks push targets and offer better rates.

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Frequently Asked Questions

What is the EMI for Rs. 5 lakh car loan at 10% for 5 years? +

The monthly EMI for a Rs. 5 lakh car loan at 10% interest rate for 5 years (60 months) is approximately Rs. 10,624. Total interest payable would be Rs. 1,37,440, making the total repayment Rs. 6,37,440.

How is car loan EMI calculated? +

EMI is calculated using the formula: EMI = P × R × (1+R)^N / [(1+R)^N – 1], where P is the principal loan amount, R is the monthly interest rate (annual rate divided by 12 divided by 100), and N is the total number of monthly installments.

Does higher down payment reduce EMI? +

Yes, a higher down payment reduces the loan principal amount, which directly reduces your monthly EMI and total interest payable. Increasing down payment from 10% to 25% can reduce EMI by approximately 15-17%.

Should I choose a longer or shorter tenure? +

A shorter tenure means higher monthly EMI but much less total interest. A 5-year tenure vs 7-year on a Rs. 8L loan at 10% saves about Rs. 1.2 lakhs in interest. Choose the shortest tenure where your EMI doesn't exceed 40% of your take-home salary.

Can I prepay my car loan to reduce EMI? +

Yes, most banks allow prepayment after 6-12 months. Floating rate car loans typically have no prepayment penalty (per RBI guidelines). You can either reduce your EMI or reduce tenure through prepayment.