Calculate your monthly car loan EMI from the on-road price and down payment — with total interest, loan-to-value ratio, and a full amortization schedule.
| Year | Principal Paid | Interest Paid | Balance |
|---|
Enter Your Car Loan Details
Fill in the on-road price, down payment, interest rate, and tenure to calculate your EMI.
A car loan EMI calculator tells you the actual monthly installment you'll pay for financing a car in India, starting from the on-road price — the full price you pay at the showroom, including ex-showroom price, RTO road tax, insurance, and registration — rather than just the sticker ex-showroom figure. NeftCal's calculator is built specifically for the Indian market: enter the on-road price and your planned down payment, and it auto-computes the loan amount, then applies the standard reducing-balance EMI formula that banks and NBFCs use internally, so the number you see should closely match what a lender quotes you.
Beyond the headline EMI, the calculator surfaces two numbers most buyers overlook when they focus only on "can I afford the monthly payment": total interest paid over the full tenure, and the Loan-to-Value (LTV) ratio — how much of the vehicle's price is financed versus paid upfront. Both matter because a car depreciates the moment you drive it out of the showroom, so financing too large a share of the on-road price at a high LTV, over too long a tenure, can leave you owing more on the loan than the car is worth for the first year or two of ownership.
This tool is useful for first-time car buyers comparing a dealer's finance offer against a bank or NBFC quote, anyone deciding how large a down payment to make, buyers comparing new-car versus used-car loan terms, and existing car owners sizing up a loan against a used-car purchase or a top-up/refinance offer. It works equally well for a quick "does this EMI fit my budget" gut check and for detailed side-by-side comparisons across lenders, interest rates, and tenures.
A car loan is usually one of the largest recurring monthly commitments in a household budget after rent or a home loan, and it's easy to underestimate the total cost by focusing only on the EMI a dealer quotes. Two loans with an identical EMI can have very different total-interest costs once tenure and rate diverge, and a low down payment that looks attractive today can mean negative equity — owing more than the car's resale value — if you need to sell or trade in within the first couple of years. Running the numbers before signing helps you size a down payment and tenure that keep the EMI comfortable without over-financing a fast-depreciating asset.
The loan amount is the on-road price minus your down payment, financed at a fixed monthly EMI
Always base the calculation on the on-road price — ex-showroom price plus RTO tax, insurance, and registration — since that's the actual amount you need to cover through down payment and loan together.
LTV = Loan Amount ÷ On-Road Price × 100. A lower LTV (bigger down payment) generally means a better interest rate offer and less risk of owing more than the car is worth.
From on-road price to a full amortization schedule in under a minute
Enter the full on-road price of the vehicle you're buying — ex-showroom price plus RTO tax, insurance, and registration — not just the ex-showroom figure a dealer often leads with. The default is ₹10,00,000, but replace it with your actual quote.
Enter the amount you plan to pay upfront. The loan amount (on-road price minus down payment) updates automatically beneath the field as you type, so you can see the financed principal before you even calculate.
Enter the annual car loan interest rate quoted by your bank, NBFC, or dealer. The field defaults to 9.5% p.a., with a hint showing the typical Indian range of 8.5%–12% p.a. for new cars.
Enter the repayment period in years, from 1 to 7 years. The default is 5 years — a common middle-ground tenure for new car loans in India.
Instantly see your monthly EMI, total interest, total amount payable, and LTV ratio, plus a down payment vs. principal vs. interest chart, a year-wise outstanding balance chart, and a full year-wise amortization schedule table you can download as a text file.
A realistic new-car EMI calculation using this calculator's own default values
Suppose you're buying a car with an on-road price of ₹10,00,000, paying ₹2,00,000 as a down payment, at a 9.5% p.a. interest rate over a 5-year (60-month) tenure — this calculator's own default inputs.
| Month | EMI | Interest | Principal | Remaining Balance |
|---|---|---|---|---|
| 1 | ₹16,801 | ₹6,333 | ₹10,468 | ₹7,89,532 |
| 2 | ₹16,801 | ₹6,250 | ₹10,551 | ₹7,78,981 |
| 3 | ₹16,801 | ₹6,167 | ₹10,635 | ₹7,68,346 |
Explanation: Notice the interest portion of each EMI shrinks and the principal portion grows every month — the reducing-balance effect. Over the full 5-year term, this loan costs roughly ₹2,08,089 in interest — about 26% of the ₹8,00,000 loan amount. Year-wise, the amortization schedule shows the balance falling from ₹8,00,000 to roughly ₹6,68,766 after year 1, ₹3,65,930 after year 3, and ₹0 at the end of year 5, with the interest share of each year's payments shrinking from about ₹70,383 in year 1 to about ₹10,003 in year 5.
Used-car comparison: The same ₹8,00,000 loan amount over the same 5-year tenure, but at a 11% used-car interest rate instead of 9.5%, works out to an EMI of about ₹17,394 per month and total interest of about ₹2,43,636 — roughly ₹35,547 more in interest than the new-car example above, purely from the 1.5-point rate difference.
What your EMI actually means for your monthly budget
A practical way to judge whether a car EMI fits comfortably into your budget is the EMI-to-monthly-income ratio — your car EMI divided by your monthly take-home pay. It isn't a formal regulatory limit specific to car loans, but it's a widely used rule of thumb among Indian financial advisors and lenders assessing overall repayment capacity (FOIR).
| Car EMI ÷ Monthly Income | General Read | Typical Context |
|---|---|---|
| Under 10% | Comfortable | Healthy repayment buffer, room for other EMIs or savings goals |
| 10% – 15% | Manageable | Common range for a single car EMI alongside other obligations |
| Over 15% | Stretched | Especially risky if combined with an existing home or personal loan EMI |
For borrowers: lenders generally look at your total EMI burden across all loans (often capped around 40–50% of monthly income), not just the car EMI in isolation — so even a comfortable-looking car EMI can strain approval odds if you're already repaying a home or personal loan. Keeping the car EMI itself under roughly 10–15% of take-home pay leaves headroom for that broader picture.
Reading your LTV ratio: an LTV near 90% means you're financing almost the entire on-road price and carrying more risk of negative equity if you need to sell early; an LTV closer to 70–80% (via a larger down payment) is generally safer and often earns a better interest rate offer.
What this calculator doesn't capture: processing fees, foreclosure charges, insurance renewal costs, and your specific credit score's effect on the quoted rate. Treat the EMI and total-interest figures as a close estimate of the core loan math, not a final sanctioned offer.
This tool provides general financial estimates for educational purposes only and does not constitute personalized financial advice. Car loan rates, fees, and eligibility vary by lender — confirm final figures with your bank or NBFC before signing a loan agreement.
Where this calculator earns its keep for Indian car buyers
Work out the EMI for a fresh on-road price quote before you finalize a booking.
Model a used car loan with a higher interest rate and shorter tenure than a new-car quote.
Check whether a dealer's tie-up finance offer actually beats a bank or NBFC loan at the real rate.
Compare a fast-approval NBFC quote against a typically lower-rate bank loan for the same on-road price.
Test how a 10% versus 20% versus 30% down payment changes your EMI, LTV, and total interest.
Compare 3-year, 5-year, and 7-year tenures on the same loan amount to weigh EMI against total interest.
Estimate a standard EMI baseline before comparing it against a dealer's balloon-payment scheme.
Approximate the added EMI from a top-up loan on top of an existing car loan balance.
Compare your current lender's EMI against a lower-rate balance-transfer offer from another bank.
Model a joint loan's EMI before adding a co-applicant to boost eligibility or lower the rate.
Estimate EMI on an EV's on-road price, where some lenders offer preferential green-loan rates.
Verify the EMI figure quoted on a sanction letter or loan estimate before you sign.
What this car loan EMI calculator does well, and where it can't replace a formal loan offer
Quick-reference comparison of typical Indian car loan terms
| Feature | New Car Loan | Used Car Loan |
|---|---|---|
| Typical interest rate | 8.5% – 12% p.a. | 10% – 15%+ p.a. (about 1–2% higher) |
| Typical LTV / financing | Up to 80–90% of on-road price | Usually capped lower, around 70–85% |
| Maximum tenure | Up to 7 years | Usually capped around 5 years |
| Minimum down payment | 10% – 20% typically | 15% – 30% typically |
| Processing fee | 0.5% – 2% of loan amount | Often slightly higher, plus valuation charges |
| Common source | Bank, NBFC, or dealer tie-up finance | Bank, NBFC, or used-car platform financing |
Common questions about car loan EMI
Official guidance to complement this calculator — not a substitute for licensed financial advice
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