Car Loan Calculator
This car loan calculator shows your monthly auto loan EMI, total interest, and the true cost of financing a car in India. Enter the amount you are financing after down payment and trade-in, the interest rate, and the term — and see instantly whether the deal in front of you is good or expensive.
On-road price minus your down payment and any trade-in value. Do not forget taxes and registration get financed too if you roll them in.
The reducing-balance rate from your loan quote. New-car rates are lower than used-car rates; dealer finance is often pricier than a bank pre-approval.
1–7 years. Shorter terms cost less overall. Avoid terms beyond 5 years — cars depreciate faster than long loans amortize.
Monthly payment
सेव करने के लिए लॉग इन करें₹16,801
What you'll pay every month for the loan term — e.g. ₹16,801/month financing ₹8,00,000 at 9.5% over 5 years.
The pure financing cost on top of the car's price — this is what stretching the term or shopping for a lower rate actually saves you.
Amount financed plus total interest — what the car really costs once every payment is made, before adding your down payment.
The amount you're borrowing after down payment and trade-in — shown for quick comparison against the totals above.
Frequently asked questions
How much car can I afford?+
The 20/4/10 rule is a solid guide: 20% down, a term of no more than 4 years, and total transport costs under 10% of gross income. Enter your numbers above — if you need a 6- or 7-year term to afford the payment, choose a cheaper car.
Is it better to finance through the dealer or a bank?+
Get a bank or NBFC pre-approval first, then let the dealer try to beat it. Dealers sometimes offer genuinely subsidised rates on new cars during festive-season promotions, but usually only on specific models and with shorter terms.
Should I take a longer loan term for a lower payment?+
Rarely. Beyond 5 years the monthly saving shrinks while interest balloons, and you risk owing more than the car is worth for years. An ₹8,00,000 loan at 9.5% costs ₹2,08,089 interest over 5 years but ₹2,98,316 over 7.
What is the difference between flat rate and reducing balance on car loans?+
Flat rate charges interest on the full original amount for the whole term; reducing balance charges only on what you still owe. A 6% flat rate costs about the same as an 11% reducing rate. Indian dealers often quote flat rates — always convert.
Can I pay off my car loan early?+
Usually yes. Indian floating-rate car loans have no prepayment penalty by regulation, though some fixed-rate car loans charge 2–5% foreclosure fees. Check your agreement — then verify the saving here by shortening the term.