Car Loan EMI Calculator
A car loan is secured against the vehicle, so rates sit below unsecured personal loans. Lenders typically finance 80% to 90% of the on-road price for a new car, with the balance as your down payment. The calculator below gives you the EMI and total interest for any combination.
Monthly EMI
₹16,068
₹8 Lakh at 7.60% for 5 years
Interest is 21% of the amount borrowed over this tenure.
Year-by-year repayment schedule
How each year splits between interest and principal. Early years are mostly interest, which is why prepaying early saves so much more than prepaying late.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹1,36,718 | ₹56,103 | ₹6,63,282 |
| 2 | ₹1,47,478 | ₹45,343 | ₹5,15,804 |
| 3 | ₹1,59,085 | ₹33,735 | ₹3,56,718 |
| 4 | ₹1,71,606 | ₹21,215 | ₹1,85,112 |
| 5 | ₹1,85,112 | ₹7,709 | ₹0 |
This calculator returns arithmetic on the figures you enter. It is not an offer, does not check your eligibility, and cannot predict the rate a lender will sanction. Loans Got Easy is an authorised Direct Selling Agent - we do not sanction, approve or disburse loans.
Finance the on-road price, not the ex-showroom price
The ex-showroom figure in the advertisement excludes registration, road tax and insurance, which together commonly add 10% or more. Lenders fund a percentage of the on-road price, and the gap between what they fund and what the car costs is your down payment. Working the budget from the ex-showroom price is the most common way buyers end up short at delivery.
A larger down payment is usually the better trade
A car is a depreciating asset, and financing more of it means paying interest on value that is falling. On an 8 lakh loan at 9% over 5 years, putting down an extra 1 lakh cuts the EMI by about 2,076 a month and saves roughly 24,600 in interest. Where the cash is genuinely spare, the higher down payment is straightforwardly cheaper.
Used car loans are priced differently
Rates on used vehicles typically run several percentage points above new-car rates, tenures are shorter, and the funded percentage is lower. Lenders also cap the vehicle's age at maturity, commonly around ten years, which shortens the available tenure on an older car. The valuation is the lender's, based on its own depreciation table rather than the price you agreed with the seller.
The dealer's finance desk is one option, not the only one
Dealer-arranged finance is convenient and sometimes carries a genuine manufacturer subvention that makes it the lower-cost option. It is also a point where a higher rate or bundled add-ons can be presented as a package. Get the rate, the processing fee and the total interest in writing, and compare against at least one bank quote before signing. On an 8 lakh loan over 5 years, a one-point rate difference is roughly 23,500 in interest.
Rates sourced from partner lender published rate schedules, last verified August 2026. Figures produced by this calculator are indicative and depend entirely on the inputs you provide. The rate you are offered is set by the lender based on your credit profile, income, employer, loan amount and tenure.
Frequently Asked Questions
At 9% p.a. over 5 years the EMI is approximately 16,607, with total interest of about 1.96 lakh. Over 7 years the EMI drops to about 12,873 but total interest rises to roughly 2.81 lakh. Car loan rates typically run 8.5% to 12% for new vehicles depending on the lender and your credit profile.
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Rates last verified August 2026. Loans Got Easy is a loan advisory and Direct Selling Agent. We do not sanction, approve or disburse loans - the lender does, based on its own credit assessment.