Personal Loan

Complete Guide On a Car Loan EMI Calculator in India


Are you planning to buy a car on EMIs and wondering how much to pay? If you are looking for a hassle-free online tool that can help you decide if a particular loan option is suitable for your finances, a vehicle loan EMI calculator will help you to calculate your loan payments. This article examines a vehicle loan EMI calculator and a car loan interest rate calculator to estimate how much you will spend on your car loan.

Car Loan EMI Calculator

The vehicle loan EMI calculator is a useful tool to estimate monthly loan payment obligations. For this, you need to enter the necessary data into the tool. There are three pieces of information necessary to arrive at the result:

  • The sum of money you are hoping to borrow (loan principal).
  • The timeframe you want for making payments (loan tenure)
  • The interest rate

When you enter these numbers into the EMI calculator, it will tell you how much you need to pay each month to pay off the car loan in full.

Formula For Calculating Car Loan EMIs

The following is the formula for the car loan interest rate calculator:

EMI =           P R



P = Principal loan amount

R = Rate of interest calculated on a monthly basis i.e. R = annual rate of interest/12/100)

For instance, if R = 10.75% per annum, then R= 10.75/12/100 = 0.0089 and N = the number of monthly instalments.

How To Use a Vehicle Loan EMI Calculator

Instantaneously, this vehicle loan EMI calculator will let you know if you can afford the monthly payments.

You need to enter:

  • The sum borrowed for car financing
  • The interest rate on car loans (percentage)
  • The period of the car loans (in months or years)

The vehicle loan EMI calculator will recalculate and update the result as you make changes to the data entered.

The monthly payment (EMI) and total interest (paid over the life of the loan) are both calculated by the vehicle loan EMI calculator. The entire amount of principal and interest that you are responsible for paying can be calculated with the help of a vehicle loan EMI calculator. This will help you visualise the full extent of your potential financial commitment before you decide on a car loan.

A reasonable EMI-to-income ratio would be around 40% of annual household income. It is advisable to check what your monthly payments will be with a vehicle loan EMI calculator before you commit to a loan.

Features of Auto Loans and Monthly Payments

Car loan monthly payments are determined by three key variables:

  • car loan principal
  • car loan interest rate
  • car loan tenure

To calculate your loan EMIs accurately, you need to first have a firm grasp on how each of these factors plays a role in your monthly payments. Doing so can help you select the right lender with confidence. These are the three key variables in detail:

  • Car Loan Principal

The monthly payments you will have to make on your car loan depend on how much you borrow. The EMIs will be higher if you borrow Rs. 6,00,000 for 2 years as opposed to Rs. 4,00,000 for the same period. Consequently, you might choose to get a smaller loan amount if you wish to considerably reduce your EMIs. You may need to come up with the difference between that amount and the car’s asking price.

  • Car Loan Interest Rate

In general, interest rates differ from one lender to the next. The interest you pay on a loan is always going to be a significant portion of the total cost of the loan, so naturally, a lower rate is preferred regardless of the loan’s size or length of term. The interest rate your lender gives you will depend on your qualifications and credit history, among other things.

  • Car Loan Tenure

The length of your auto loan is measured by the total number of monthly payments, or EMIs. In some cases, stretching out loan payments over a longer period of time can reduce monthly payments, but will ultimately cost you more in interest. Similarly, the overall cost of the loan can be kept in check even if you want to pay it off in a shorter time frame by paying a larger monthly instalment fee.

A vehicle loan emi calculator allows you to play around with different loan amounts and loan terms to see what works best for you.

Benefits of Car Loan EMI Calculator

For many people, our auto loan EMI calculator is an invaluable resource. Some of these are not:

  • Convenience:

As was previously shown, EMI calculations performed by hand can be extremely time-consuming and error-prone. When computing the outcome, it’s not uncommon to make a mistake. On the other hand, the EMI calculator’s user interface is cleaner and more straightforward.

  • Accurate Results:

When dealing with such large sums, any mistake can have a devastating impact. When you try to figure out your auto loan EMIs without a calculator, you greatly increase the likelihood of making a mistake like this. Consequently, make use of the less difficult choice so as to save unnecessary effort.

  • Faster calculations:

It is another advantage of car loan EMI calculators over the manual method, which has the drawback of taking several minutes longer to reach the conclusion. You may get the same information nearly instantly from an auto loan EMI calculator if you enter the necessary information.

  • Amortisation schedule:

You can see how much of each EMI goes toward paying down principal and how much goes toward interest by looking at your loan’s amortisation table, also known as its amortisation schedule. When you plug your auto loan details into an EMI calculator, you get a table like this as a result.

There’s no denying the fact that a car loan When trying to get a loan to buy your ideal car, an EMI calculator is virtually a necessity.


In this essay, we’ll take a deep dive into car loan emi calculators in India so you can make an informed decision. Consider carefully whether getting a car loan is the best option for you or not. It’s crucial to consider the flip side of the debt repayment coin before making progress. Before applying for a car loan, talk to your bank and get the advice of those who have done it before. Using an EMI auto loan calculator, you may determine how much you can afford to borrow and still afford to make your monthly payments comfortably. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their own research. Also visit, Piramal Finance has more in-depth, educational, financial-related articles.