Car Loan EMI Calculator
Start from the real on-road price, not just the ex-showroom sticker. See your monthly EMI, the total interest you will actually pay, and how much car your budget can afford. Built for India, July 2026 bank rates included. No sign-up.
What your EMI looks like at a glance
The calculator above is the accurate one, because it starts from the real on-road price and lets you change the rate, tenure and down payment. But if you just want a rough feel, here is what a loan costs at 9% per year over 5 years, the most common choice in India.
| Loan amount | Monthly EMI (approx) | Total interest over 5 years |
|---|---|---|
| ₹5 lakh | ₹10,380 | ₹1.23 lakh |
| ₹8 lakh | ₹16,610 | ₹1.96 lakh |
| ₹10 lakh | ₹20,760 | ₹2.46 lakh |
| ₹15 lakh | ₹31,140 | ₹3.68 lakh |
Two things jump out. First, the interest is real money, roughly a quarter of the loan over five years. Second, these are loan amounts, not car prices. On a ₹10 lakh car you would normally put down about 20%, so the loan is closer to ₹9 lakh, and you should always work from the on-road price, not the ex-showroom one. The tool does exactly that.
Before you sign, run these three checks
- Get your true on-road price. Road tax and insurance add 10 to 15% depending on your state. Use the Road Tax Calculator for the exact figure.
- Compare at least two banks. Public banks like Canara, Union Bank and SBI are often the cheapest for new cars right now. A quarter of a percent lower rate is worth thousands over five years.
- Pick the shortest tenure you can afford. A longer loan is a smaller EMI but a bigger total cost. The tenure table in the tool shows you the difference in rupees.
Still deciding which car to buy? Our Find Your Car tool gives you three honest picks for your budget, and our guides to the best SUVs under ₹10 lakh and safest cars in India help you shortlist.
How to read your car loan EMI honestly
The calculator above does the maths, but the number that matters is not the monthly EMI, it is the true cost of the car once interest is added. A ₹10 lakh car on a 7-year loan can quietly cost you ₹3 lakh or more in interest. This page shows you that full picture, and how to keep it low.
Ex-showroom is not what you pay
The price in the ad is almost always ex-showroom. What you actually pay, the on-road price, adds road tax, registration and first-year insurance, and it is usually 10 to 15 percent higher depending on your state. Your loan is taken on the on-road price minus your down payment, so always start from on-road. For the exact figure in your state, use our Road Tax Calculator before you sign anything.
Put down at least 20 percent
A bigger down payment means a smaller loan, less interest, and often a slightly lower rate. Twenty percent is a sensible floor. Zero-down-payment offers feel easy but you pay interest on the whole car, and you can end up owing more than the car is worth in the first year.
The tenure trap: cheaper EMI, costlier car
Stretching the loan from 5 years to 7 years drops your monthly EMI, which is why dealers love to show you the long-tenure number. But you pay interest for two extra years, so the total interest jumps. Use the tenure table in the tool to see the real difference, then pick the shortest tenure whose EMI you can pay comfortably.
Your credit score sets your rate
Rates in the tool assume a healthy CIBIL score (750 and above). If your score is 700 to 749 expect roughly 0.25 to 0.50 percent more, and below 700 the rate can be 1 to 2 percent higher or the loan refused. A salary account with the same bank often earns a small discount, so it is worth asking.
Frequently asked questions
How is car loan EMI calculated in India?
EMI uses the reducing-balance formula: EMI = P x r x (1+r)^n divided by ((1+r)^n minus 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100) and n is the number of months. Our calculator does this for you and also adds road tax and insurance to get your real loan amount.
What is a good car loan interest rate in July 2026?
For a new car with a strong credit score, public banks are the cheapest, roughly 7.45 to 9.25 percent (Canara, Union Bank and SBI), while private banks like ICICI and HDFC sit around 8.85 to 9.75 percent. Used-car loans cost 2 to 4 percent more. Always compare at least two lenders before you commit.
What is the best car loan tenure?
Three to five years is the sweet spot. A 7-year loan lowers the monthly EMI but you pay noticeably more total interest. Choose the shortest tenure whose EMI stays comfortably under about 40 percent of your monthly take-home pay, counting all your other EMIs.
How much car can I afford on my salary?
Switch the tool to "What car can I afford?" and enter the EMI you can pay and the down payment you have. A common guideline is that the on-road price stays under your annual take-home income, and your total EMIs stay under 40 percent of your monthly pay. Then use our Find Your Car tool to shortlist models in that budget.
Does this calculator save my data?
No. Everything runs in your browser. Nothing you type is sent to a server, saved, or shared.
Rates and charges change often and vary by lender, city and profile. Treat these numbers as a close estimate and confirm the final on-road price, rate and processing fee with the dealer and bank before you book.