Calculate monthly EMI, total interest and total payment for your car loan.
Monthly EMI
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Total Interest
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Total Payment
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EMI = Equated Monthly Installment. This calculator is for estimation only.
What is Car Loan EMI
A Car Loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your car loan. It includes both the principal loan amount and the interest charged by the bank or financial institution. The EMI ensures that your repayment is evenly spread over the chosen tenure, helping you manage your finances efficiently. Each EMI you pay gradually reduces your outstanding loan balance тАФ initially covering more interest and later more principal. The EMI amount depends on three main factors: the loan amount, interest rate, and repayment period.
What is a Car Loan EMI Calculator?
A Car Loan EMI Calculator is an online financial tool that helps you estimate your monthly instalment amount before applying for a car loan. It automatically calculates your EMI, total interest payable, and total payment based on your loan amount, interest rate, and tenure. The calculator gives instant and accurate results, eliminating the need for manual mathematical calculations. Using a Car Loan EMI calculator from Business Day helps you plan your car purchase better, compare loan offers, and choose the most affordable repayment option that fits your budget.
How Can a Car Loan EMI Calculator Help You?
A Car Loan EMI Calculator is a valuable tool for anyone planning to buy a new or used car with financial assistance. It helps you in the following ways:
Provides a clear breakdown of monthly EMIs, total interest, and overall payment amount.
Saves time by offering instant results without complex calculations.
Helps you compare different interest rates, loan amounts, or tenures to find the best deal.
Allows you to adjust your parameters to see how EMI changes with variations in rate or duration.
Encourages better financial planning by showing how much of your income will go toward loan repayment.
By using the Business Day Car Loan EMI Calculator, you can make an informed borrowing decision and avoid surprises later.
How Does a Car Loan EMI Calculator Work?
A Car Loan EMI calculator uses a standard amortization formula to determine your monthly repayment amount based on the principal loan, interest rate, and tenure. It applies the concept of compound interest to compute a fixed monthly instalment.
Formula Used:
Parameter
Description
EMI
Equated Monthly Instalment
P
Principal loan amount
R
Monthly interest rate (Annual Rate ├╖ 12 ├╖ 100)
N
Loan tenure in months
Formula: EMI = [P ├Ч R ├Ч (1 + R)^N] / [(1 + R)^N тАУ 1]
This means if you take a car loan of тВ╣8,00,000 at 9% interest for 5 years, your monthly EMI will be approximately тВ╣16,637.
How to Use Business Day Car Loan EMI Calculator?
Using the Business Day Car Loan EMI Calculator is simple, quick, and user-friendly. You only need to provide three details тАФ your car loan amount, interest rate, and repayment tenure.
Enter the total car loan amount you wish to borrow.
Enter the applicable annual interest rate.
Select or input the loan tenure in years.
Click on тАЬCalculate EMI.тАЭ
The calculator instantly displays your monthly EMI, total interest payable, and total payment. You can modify any of the values to analyze different scenarios тАФ such as changing the tenure or interest rate тАФ and see how it affects your EMI. This interactive tool allows you to plan your car purchase according to your financial comfort.
Advantages of Using Business Day Car Loan EMI Calculator
Accurate and instant EMI results with zero manual effort.
Completely free to use with no registration or personal details required.
Easy comparison of multiple car loan offers or banks.
Helps you determine the most suitable loan tenure for your budget.
Provides clarity on total interest payable before loan approval.
Enables transparent and responsible borrowing decisions.
Works seamlessly across devices, ensuring accessibility anywhere.
The Business Day Car Loan EMI Calculator empowers you to make smarter, data-driven financial choices. By understanding your potential repayment obligations upfront, you can plan your car purchase confidently and stay financially secure throughout your loan journey.
Car Loan EMI Calculator тАУ Frequently Asked Questions
What is the car loan?
A car loan is a secured loan offered by banks, NBFCs or car finance companies to help you purchase a new or used vehicle. The lender pays the carтАЩs cost upfront and you repay it in EMIs over a fixed tenure. The vehicle itself is usually hypothecated to the lender until the loan is fully repaid.
Which bank loan is best for a car loan?
тАЬBestтАЭ depends on the lowest effective interest rate, processing fee, LTV (loan-to-value) and prepayment rules. Most large Indian banks (SBI, HDFC Bank, ICICI Bank, Axis Bank) and leading NBFCs offer competitive car loans. Always compare net cost тАФ interest + processing + insurance add-ons тАФ not just the headline rate.
What is the EMI for a car loan?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay the car loan. It contains principal + interest. EMI is calculated from three inputs: loan amount, interest rate and tenure. You can use the Business Day Car Loan EMI Calculator to know the exact EMI before you apply.
Can I avail myself a car loan to buy a used vehicle?
Yes. Most lenders offer used / pre-owned car loans. However, the LTV may be lower than for a new car, the tenure is usually shorter, and the interest rate may be slightly higher because the asset is older.
What is the typical tenure of a car loan in India?
In India, car loan tenures generally range from 12 months to 84 months (1 to 7 years). The most common range is 3 to 5 years. Longer tenure lowers the EMI but increases total interest paid.
Do I need a co-guarantor for a car loan?
Not always. If your income, credit score and repayment capacity meet the bankтАЩs policy, a co-applicant is not required. A co-borrower or guarantor may be asked if your income is low, you are self-employed with limited proofs, or the vehicle is being bought jointly.
Are car loans in India fixed rate loans or variable rate loans?
Most retail car loans in India are offered on fixed interest rates, especially from banks and NBFCs, so your EMI remains the same throughout the tenure. Some lenders may link it to an external benchmark, but thatтАЩs less common than in home loans.
What exactly does the car loan calculator do?
The car loan EMI calculator takes three values тАФ loan amount, annual interest rate and tenure тАФ and instantly shows your monthly EMI, total interest payable and total cost of the loan. It helps you see affordability before applying.
Can I sell the car, before the car loan is closed?
You can sell the car, but only after the lenderтАЩs hypothecation is cleared. Usually you must foreclose the loan or get a NOC from the lender so the buyer can transfer ownership. Without NOC, the RTO will show the loan lien on the RC.
How much of car loan should you ideally take as percentage of value?
Lenders often finance 80% to 100% of the on-road price, but from a personal finance view itтАЩs safer to finance 70%тАУ85% and pay the rest as down payment. A higher down payment reduces EMI and total interest.
Can my car loan application be rejected?
Yes, if your credit score is low, income proof is insufficient, existing EMIs are high, employment is unstable, or the vehicle is not in the lenderтАЩs approved list. Using a calculator to check EMI vs. income before applying reduces rejection chances.
Is a 60 or 72 month car loan better?
A 72-month loan reduces the EMI but increases total interest. A 60-month (5-year) loan is financially better because you pay off the car faster and pay less interest overall. Choose 72 months only if you must keep EMI low.
What is the rule of 30% EMI?
The 30% EMI rule says your total EMIs (including car, home, personal loan, credit card EMI-conversions) should not exceed 30% of your monthly take-home income. Staying within this limit keeps your debt manageable.