Typically 9%–12% p.a., up to 7 years
Car loan EMI calculator
Check the EMI and true interest cost of a car loan, and see how much a shorter tenure or a small monthly top-up saves.
Your loan details
₹9.00 L
Monthly reducing balance. 0% is supported.
Total tenure: 60 months (5 years)
Use this for tenures like 5 years 6 months.
Added to every EMI and applied straight to principal.
Monthly EMI
₹18,946
Loan closes in
5 years
Oct 2031
Total interest
₹2.37 L
₹2,36,741
Total payment
₹11.37 L
Principal ₹9.00 L
Shared links carry only the loan numbers you entered — never any personal details.
| Year | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | ₹80,030 | ₹1,47,318 | ₹7,52,682 |
| Year 2 | ₹65,248 | ₹1,62,100 | ₹5,90,582 |
| Year 3 | ₹48,983 | ₹1,78,365 | ₹4,12,217 |
| Year 4 | ₹31,086 | ₹1,96,262 | ₹2,15,955 |
| Year 5 | ₹11,394 | ₹2,15,955 | ₹0 |
ByeToEMI — Car loan statement
Loan amount ₹9,00,000 · Rate 9.6% p.a. · Tenure 60 months · EMI ₹18,946
Assumptions: monthly reducing balance, interest on the outstanding principal, first EMI next month, extra payments applied to principal in the same month, fees shown separately.
Total interest ₹2,36,741 · Total payment ₹11,36,741 · Closes in 5 years (Oct 2031)
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.
These results are mathematical estimates. Your lender's EMI, fees, taxes and prepayment charges may differ. Read the full financial disclaimer.
How this calculator works
Car loans in India are usually 3 to 7 year loans on a monthly reducing balance, often for 80–90% of the on-road price.
Because the tenure is short, the EMI is high relative to the loan amount, but the total interest is much smaller than on a home loan.
A car is a depreciating asset, so closing the loan early is mainly about paying less interest and freeing up cash flow rather than building equity.
The formula used is the standard monthly reducing-balance EMI: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. At 0% interest the EMI is simply P ÷ n.
A worked example
A ₹9,00,000 car loan at 9.6% per year for 60 months has an EMI of about ₹18,939.
Total interest over five years is roughly ₹2.36 lakh, taking the total outgo to about ₹11.36 lakh.
Paying ₹3,000 extra each month closes the loan roughly 9 months early and saves close to ₹37,000 in interest.
Limitations you should know
- Down payment, insurance, road tax and accessories are not part of the loan amount here — enter only the financed amount.
- Some lenders apply a flat-rate or advance-EMI structure; those cost more than the reducing-balance figure shown.
- Foreclosure charges of 2–5% of the outstanding amount are common on car loans and are not included unless you add them as a fee.
Frequently asked questions
- Is a 3-year or 7-year car loan better?
- A 3-year loan has a much higher EMI but far less total interest. A 7-year loan is easier monthly, yet you may still owe money when the car has lost most of its value.
- Can I prepay a car loan?
- Usually yes, after a lock-in of 6–12 instalments, but many lenders charge a foreclosure fee. Compare the fee against the interest saved before closing early.
- Why is my dealer's EMI different from this calculator?
- Dealer quotes often include insurance, extended warranty or accessories in the financed amount, or use an advance EMI. Enter the actual sanctioned loan amount for a like-for-like figure.
- Does a bigger down payment reduce my interest?
- Yes. A larger down payment lowers the financed amount, so both the EMI and the total interest fall proportionately.
Last reviewed: 1 September 2026
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.