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Car Loan EMI Calculator

Plan your drive with confidence. Calculate your monthly car payments, total interest costs, and ideal tenure in seconds—100% free and accurate.

$
3K200K
$
3K200K

Loan Required: $35,000

0.1%15%
Years
1Y7Y

Monthly EMI

$685
Principal Amount$35,000
Total Interest$6,089
Total Payment$41,089

Total Cost Breakup

What is a Car Loan Calculator?

A Car Loan Calculator is a financial planning tool designed to help you estimate the monthly installments (EMI) required to pay off a vehicle loan. Whether you are buying a brand-new sedan, an SUV, or a pre-owned vehicle, understanding your monthly financial commitment is the first step to smart ownership.

By inputting the loan amount, interest rate, and loan term, this tool provides a clear breakdown of your principal repayment versus the interest cost, ensuring no surprises when you sign the dealership papers.

How This Calculator Works

Our algorithm uses the standard reducing balance formula used by major banks globally. Here is the logic:

  • 1Input Loan Amount: The price of the car minus your down payment.
  • 2Interest Rate: The annual percentage rate (APR) offered by your lender.
  • 3Tenure: The duration over which you will repay the loan (usually 3 to 7 years).

Why Use Finvra?

  • Bank-Grade Accuracy

    Matches calculations used by top financial institutions.

  • Privacy First

    No login required. We do not store your financial data.

  • Decision Power

    Compare different tenures to find a payment that fits your budget.

  • 100% Free

    Unlimited calculations with zero hidden fees.

Smart Car Buying Tips

Buying a car is one of the largest purchases most households make. However, unlike a home, a car is a depreciating asset—it loses value over time. Here are key strategies to finance smartly:

Check Your Budget

Ensure your EMI doesn't exceed 10-15% of your monthly take-home income.

Compare Rates

A difference of 0.5% in interest can save you significant money over 5 years.

Shorten the Term

Opt for the shortest tenure you can afford to minimize interest payments.

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Frequently Asked Questions

How is the Car Loan EMI calculated?
The calculator uses the standard reducing balance method. It factors in your principal loan amount, the annual interest rate, and the loan tenure to determine a fixed monthly payment that covers both interest and principal repayment.
What is the 20/4/10 rule for buying a car?
This is a popular financial guideline: Pay at least 20% as a down payment, finance the car for no more than 4 years, and ensure your total monthly car expenses (EMI, insurance, gas) do not exceed 10% of your gross monthly income.
Does this calculator work for Used Cars?
Yes. Used car loans typically have higher interest rates than new car loans. Simply input the specific interest rate offered by your lender for a used vehicle to get an accurate estimate.
How does a larger down payment affect my loan?
Making a larger down payment reduces the 'Principal' amount you need to borrow. This directly lowers your monthly EMI and significantly reduces the total interest you pay over the life of the loan.
Is it better to choose a shorter or longer loan tenure?
A shorter tenure (3-4 years) increases your monthly EMI but saves you money on total interest. A longer tenure (5-7 years) lowers your monthly payment but increases the total cost of the car due to higher interest accumulation.

Disclaimer: This Car Loan Calculator is for estimation purposes only. Actual EMI may vary based on the lender's processing fees, final interest rate offered based on your credit profile, and taxes. Please consult your financial institution for the final loan offer.