Car Loan EMI Calculator India 2026 | Free Monthly EMI Calculator | AutoFreak
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Car Loan EMI Calculator
India 2026

Calculate your exact monthly EMI, total interest payable, and see a full year-by-year amortization breakdown. Free, instant, no sign-up needed.

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Loan Details
₹1L₹50L
Enter on-road price or loan amount after down payment
₹0₹20L
Higher down payment = lower EMI
% p.a.
6%20%
Check your bank's current rate before applying
Months
6m84m (7yr)
5 years
📊
Your EMI Breakdown
Monthly EMI
₹14,559
per month
Total Interest
₹1,73,540
extra you pay
Total Payable
₹8,73,540
principal + interest
20%
Interest
Loan amount: ₹7,00,000
Principal 80% Interest 20%
Principal ₹7,00,000
Total Interest ₹1,73,540
Total Payable ₹8,73,540

📅 Amortization Schedule

Period EMI Principal Interest Balance

How to Use This Car Loan EMI Calculator

Getting an accurate EMI estimate takes under 30 seconds. Here's how:

1

Enter the Car Price or Loan Amount

Type the on-road price of the car you want to buy, or the specific loan amount you plan to borrow.

2

Set Your Down Payment

Enter how much you'll pay upfront. The calculator automatically deducts this from the loan amount. Most banks require a minimum 10–15% down payment.

3

Enter the Interest Rate

Check your bank's current car loan rate from the table below. Use the rate you've been quoted, or try different rates to compare lenders.

4

Choose Your Loan Tenure

Select how many months you want to repay. Longer tenure = lower EMI but higher total interest paid.

5

Review Your EMI and Schedule

The calculator instantly shows your monthly EMI, total interest, total payable, and a full year-by-year repayment schedule.

Car Loan Interest Rates in India 2026

Interest rates vary across lenders. Here are the current approximate car loan rates from major Indian banks:

LenderInterest Rate (p.a.)Max TenureMax Financing
SBI8.65% – 10.15%7 years90% of on-road price
HDFC Bank8.75% – 11.00%7 years100% ex-showroom
ICICI Bank8.80% – 12.75%7 years100% ex-showroom
Axis Bank9.00% – 13.50%7 years90% of on-road price
Kotak Mahindra Bank9.25% – 13.00%5 years90% of on-road price
Bank of Baroda8.60% – 10.60%7 years85% of on-road price
Bajaj Finance9.50% – 15.00%5 years100% ex-showroom

*Rates are indicative. Always confirm directly with your bank before applying.

How is Car Loan EMI Calculated?

Car loan EMI uses the reducing balance method — the standard used by all Indian banks. The formula is:

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

  • P = Principal loan amount (car price minus down payment)
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = Loan tenure in months

For example, a ₹7 lakh loan at 9% p.a. for 5 years gives an EMI of approximately ₹14,559 per month with total interest of ₹1.73 lakh.

Flat Rate vs Reducing Balance

All major Indian banks use reducing balance, where interest is calculated on the outstanding principal each month — not the original amount. This is significantly cheaper than the flat rate method. Always confirm which method your lender uses.

Tips to Get the Lowest Car Loan EMI

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Improve your CIBIL score

A score above 750 unlocks the lowest interest rates from most banks.

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Pay a higher down payment

20–30% down payment significantly reduces your principal and EMI.

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Compare multiple lenders

Even 0.5% rate difference on ₹8L saves ₹15,000+ over 5 years.

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Choose the right tenure

Longer tenure lowers EMI but increases total interest. Find the balance.

Prepay when possible

Even one extra EMI per year saves significant interest over the loan life.

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Negotiate with the dealer

Dealers often have bank tie-ups offering 0–1% lower rates.

Frequently Asked Questions

How is car loan EMI calculated? +
EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. All major Indian banks use the reducing balance method.
What is the EMI for a ₹10 lakh car loan? +
For a ₹10 lakh loan at 9% p.a. for 5 years, the EMI is approximately ₹20,758 per month. Total interest paid would be around ₹2.45 lakh. Use the calculator above for your exact figures.
What is a good interest rate for a car loan in India? +
Good rates range from 8.5% to 10% p.a. for borrowers with a CIBIL score above 750. Public sector banks like SBI and Bank of Baroda typically offer the lowest rates.
What is the maximum tenure for a car loan in India? +
Most banks offer up to 7 years (84 months). A longer tenure reduces monthly EMI but significantly increases the total interest paid over the loan life.
How much down payment is required? +
Most banks finance 85–90% of the on-road price, requiring a minimum 10–15% down payment. A higher down payment reduces your EMI and total interest significantly.
Does prepaying a car loan save money? +
Yes, significantly — especially in the early years when most of your EMI goes toward interest. Even one extra EMI per year can reduce your tenure by several months.
What is reducing balance interest? +
Reducing balance calculates interest only on the outstanding principal each month, not the full original amount. All major Indian banks use this method for car loans — it is cheaper than the flat rate method.
Can I get a car loan with a low CIBIL score? +
It's difficult below 650. A score between 650–750 may get approval at higher rates. Above 750 qualifies for the best rates. Improve your score by clearing existing dues and maintaining timely payments for 6–12 months.