Car Loan Calculator

Calculate monthly car loan payments and total costs

Car Loan Tips: New cars typically get lower interest rates (3-5%) than used cars (5-10%). Aim for 20% down payment and loan term of 4-5 years maximum. Longer terms mean lower monthly payments but much more interest paid.

New cars: 3-5%, Used cars: 5-10%

Car Loan Tips:

  • • 20/4/10 Rule: 20% down, 4-year loan max, under 10% of gross income
  • • New vs Used: New cars depreciate 20% in first year, used can save thousands
  • • Rate Shopping: Compare rates from banks, credit unions, and dealer financing
  • • Pre-approval: Get pre-approved before shopping to negotiate better
  • • Total Cost: Consider insurance, gas, maintenance, not just monthly payment
  • • Avoid Long Terms: 6-7 year loans often lead to being "underwater" (owing more than car's worth)

📐Formula

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

💡How it works

Calculate your monthly car payment, including down payment and trade-in value. Compare different loan terms to find the best auto financing option. Typical car loan rates range from 3-10% depending on credit score and vehicle type (new vs used).

ℹ️ What is Loan Calculator?

A loan calculator determines your monthly repayment amount (EMI), total interest paid, and total amount repaid over the life of a loan. It works for personal loans, car loans, student loans, and any fixed-rate installment loan.

📐 Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P— Principal — the original loan amount
r— Monthly interest rate = Annual rate / 12 / 100
n— Total number of monthly payments (months)
EMI— Equated Monthly Installment

✏️ Worked Example

Loan Amount: ₹5,00,000
Annual Interest: 10%
Tenure: 5 years (60 months)
  1. 1Monthly rate r = 10 / 12 / 100 = 0.00833
  2. 2n = 60 months
  3. 3EMI = 5,00,000 × 0.00833 × (1.00833)⁶⁰ / ((1.00833)⁶⁰ − 1)
  4. 4EMI = 5,00,000 × 0.00833 × 1.6453 / 0.6453 ≈ ₹10,624
  5. 5Total payment = ₹10,624 × 60 = ₹6,37,440
  6. 6Total interest = ₹6,37,440 − ₹5,00,000 = ₹1,37,440
✅ Result: EMI = ₹10,624 | Total Interest = ₹1,37,440

💡 How to Interpret Results

  • ▸A lower EMI looks attractive but means more interest paid overall — check the total repayment amount.
  • ▸The debt-to-income (DTI) ratio should be ≤ 36%; your EMI should not exceed this of your monthly income.
  • ▸Extra payments reduce principal directly and can cut months off your loan.
  • ▸Comparing loans: use the Total Interest Paid figure, not just the monthly EMI.
  • ▸Secured loans (car, home) typically have lower rates than unsecured personal loans.

❓ Frequently Asked Questions

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