Car Loan EMI Calculator

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What is Car Loan EMI?

Car Loan EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay your car loan. It combines principal and interest, ensuring the loan is cleared over time. Knowing your EMI helps you plan your finances before committing to a car loan.

How is Car Loan EMI Calculated?

The EMI is calculated using a standard formula based on the loan amount, interest rate, and loan tenure in months.

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
EMI = Equated Monthly Installment
P = Principal Loan Amount
R = Monthly Interest Rate (Annual Interest Rate / 12 / 100)
N = Loan Tenure in Months (Years * 12)

Key Factors Affecting Car Loan EMI

Loan Amount

Bigger loans mean higher EMIs.

Interest Rate

Small rate changes can significantly impact your EMI.

Loan Tenure

Longer terms lower your EMI but increase total interest.

Car Loan FAQs

Car loans usually span 3 to 7 years, though some lenders offer flexible terms based on eligibility.

Yes, prepayment is often allowed, but check for potential charges depending on your lender’s terms.

A larger down payment reduces the loan size, lowering your EMI and total interest.

Most car loans have fixed rates for consistent EMIs; some offer floating rates that vary with market conditions.

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