### Car Loan EMI Calculator

Buying your dream car is almost within your reach irrespective whether you are salaried or self-employed. You don’t need to be wealthy enough or save a fair amount of money to buy your first car, unlike a couple of decades ago. You can simply avail a new Car Loan and drive in your dream car sooner.

- Easy to access
- Provides quick results
- Saves time and energy spent on doing manual calculations
- Helps you ascertain how much will be your Car Loan EMI outgo
- Make loan planning easier for you
**Standing Instructions:**If you have a Savings Account, Salary Account or Current Account, you can provide one-time standing instructions to directly debit your account for the specific EMI amount every month.**National Automated Clearing House (NACH) or Electronic Clearing Service(ECS):**A mandate for this service can be submitted to the bank to automatically debit your account with the exact EMI amount on the date set up for repayment of your loan.**Post Dated Cheques:**It is a traditional means to repay your loan. You can submit post-dated cheques to the Bank for the entire tenure of the loan with the exact monthly EMI amount. Before you select your mode of payment, do make sure to know your EMI amount through the Car Loan Interest Calculator.- Loan Amount Required
- Tenure
- Interest Rate

#### Loan EMI

₹0

#### Total Interest Payable

₹0

#### Total Payment

(Principal + Interest)

₹0

To make the loan repayment comfortable, you have the EMI (Equated Monthly Instalment) facility. So, before you apply for a Car Loan, as a prudent loan planning exercise, you should assess how much would be the EMI on your Car Loan.

It is very easy to calculate the EMI for your car loan. Calculate how much you may have to pay every month for your car loan with V3Cars’ interactive auto loan EMI calculator. You will get car loan EMI as soon as you enter the required loan amount, the interest rate and the desired tenure period. Installment in EMI calculator is calculated on reducing balance.

As per the rules of financing institutions, processing fee or possible charges may be applicable which are not shown in the EMI we calculate. You can get a pre-approved car loan, depending on your income and credit score, but subject to maximum loan tenure and the loan amount. Today, banks in India offer Car Loans at an attractive rate of interest, low processing fee, a repayment tenure of upto 7 years, and higher loan-to-value ratio (100% on-road price funding on certain models) to purchase a new car. The Car Loan is offered even to proprietorship firms, partnership firms, companies, trusts and societies.

Note: The rate mentioned in the calculator is an indicative rate only. The actual rate may vary.

##### What is an EMI?

The Equated Monthly Instalment (or EMI) consists of the principal portion of the loan amount and the interest. It consists of the interest on loan as well as part of the principal amount to be repaid. Therefore, EMI = principal amount + interest paid on the Car Loan. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. The EMI, usually, remains fixed for the entire tenure of your loan, and it is to be repaid over the tenure of the loan on a monthly basis. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.

Mathematically, EMI is calculated as under:

**E = P x R x (1+R)^N / [(1+R)^N-1]**

where

**E** is EMI

**p** is Principal amount of the loan

**R** is Rate of interest (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)

**N** is Number of monthly installments.

For example, if you borrow ₹10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then **EMI = ₹10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 - 1) = ₹13,493.** i.e., you will have to pay ₹13,493 for 120 months to repay the entire loan amount. The total** amount payable will be ₹13,493 * 120 = ₹16,19,220** that includes ₹6,19,220 as interest toward the loan.

V3Cars’ Car EMI Loan calculator is a great online tool that enables you to understand how much will be your EMI outgo. All you gotta do is use the slider to enter the loan amount, interest rate, and the tenure of your loan (in years or months ).

Computing EMI for different combinations of principal loan amount, interest rates and loan term using the above EMI formula by hand or MS Excel is time consuming, complex and error prone. Our Car EMI calculator automates this calculation for you and gives you the result in a split second along with visual charts displaying payment schedule and the break-up of total payment.

Here are the five benefits of using the EMI calculator:

Remember, the interest rate and your loan tenure are the vital deciding factors for your loan EMI. Higher the interest rate on the loan, higher will be your EMI and vice-versa. Similarly, opting for a longer tenure reduces your EMI and vice versa. So, consider opting for longer loan tenure when you avail a Car Loan so that repayments can become comfortable.

Do note that during the initial months of the Car Loan tenure, you pay more towards interest, and gradually, as you repay the loan, a higher portion is adjusted towards the principal component. This is because; EMIs are computed on a reducing balance method, which works in your favour as a borrower.

##### How to Use Car Loan Monthly EMI Calculator?

Use V3Cars’ Auto EMI Loan calculator to know the indicative EMI for the chosen interest rate and tenure. With colourful charts and instant results, our EMI Calculator is easy to use, intuitive to understand and is quick to perform. Simply key in the amount(rupees), rate of interest(percentage) , tenure(months or years) for which the car loan is sought and EMI in advance OR EMI in arrears, the Car Loan Monthly EMI Calculator will automatically reflect the approximate EMI applicable for the loan tenure.

Use the slider to adjust the values in the EMI calculator form. If you need to enter more precise values, you can type the values directly in the relevant boxes provided above. As soon as the values are changed using the slider (or hit the 'tab' key after entering the values directly in the input fields), EMI calculator will re-calculate your monthly payment (EMI) amount.

A pie chart depicting the break-up of total payment (i.e., total principal vs. total interest payable) is also displayed. It displays the percentage of total interest versus principal amount in the sum total of all payments made against the loan. The payment schedule table showing payments made every month / year for the entire loan duration is displayed along with a chart showing interest and principal components paid each year. A portion of each payment is for the interest while the remaining amount is applied towards the principal balance.

Also, remember to refer to the amortization schedule which shows a break-up of the interest and principal repaid each year during the loan tenure. The payment schedule also shows the intermediate outstanding balance for each year which will be carried over to the next year.

For further information or to apply for a loan, simply click on the “Get Bank Quotation” button and key in your details.

##### What are the modes of paying car loan EMI?

Banks offer you multiple options for paying your Car Loan EMI. You can select the one which suits you best:

##### What are the advantages of using car loan EMI calculator?

V3Cars Car Loan Interest Rate Calculator is a straightforward and hassle-free online tool to assist you to ascertain the final principal and interest amount of your Car Loan. By entering the following data:

you will have the EMI amount before you proceed with the formalities of the loan. The Car Loan Calculator gives you the exact amount that is payable by you every month.

##### Does the loan tenure affect my EMI for a car loan?

Yes, the loan tenure affects your EMI for the car loan. The longer the tenure of the car loan, the lower the repayable amount for EMI. The shorter the loan tenure, the higher the repayable amount for EMI for the car loan. You can find the amount of the varied EMI amounts and tenures with the help of our Car Loan EMI Calculator.

##### Is the car loan EMI fixed or can it change in future?

No, the car loan EMI is not fixed. It depends on whether the interest rate opted by you is a fixed rate or a floating rate. If the interest rate is a fixed one, then your monthly EMI is also fixed. However, if you opt for a floating interest rate, then your EMI amounts fluctuate depending on the monthly interest rate. Additionally, if you repay the principal amount before the tenure, the EMI amount will decrease. A Car Loan EMI Calculator assists you with the exact EMI amounts as per the chosen interest rate.