- Start from the on-road price, not ex-showroom.Find your car's city-wise on-road price on its model page — it includes road tax, insurance and charges that add 10–20% over the sticker price.
- Aim for 20% down, 4-year tenure. The classic 20-4-10 rule: 20% down payment, loan no longer than 4 years, and all car expenses under 10–15% of monthly take-home. Our affordability guide works through the full math by salary level.
- Compare rates before the showroom.Dealer-arranged financing is convenient but not always cheapest — check your own bank's rate first, as of July 2026 typically 8.4–9.5% p.a. for new cars.
Car EMI Calculator
Work out your monthly EMI, loan amount and total interest from the on-road price, down payment, interest rate and tenure. No sign-up, nothing stored — adjust the sliders and the numbers update instantly.
Monthly EMI
₹16,607
Loan amount
₹8,00,000
Total interest
₹1,96,401
How to use it well
Frequently Asked Questions
How is car loan EMI calculated?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount (on-road price minus down payment), r is the monthly interest rate (annual rate ÷ 12), and n is the tenure in months. A ₹10 lakh loan at 9% for 5 years works out to roughly ₹20,760 per month.
Should I calculate EMI on ex-showroom or on-road price?
Always on-road price — that's what you actually pay, and it runs 10–20% above ex-showroom once road tax, insurance and charges are added. Banks typically finance 80–90% of the on-road price.
What is a good car loan interest rate in India?
As of July 2026, new-car loan rates at major banks run roughly 8.4–9.5% p.a. depending on your credit score, the bank and the car. Rates a full point above that range are worth negotiating or shopping around.
Is a longer car loan tenure better?
A longer tenure lowers the monthly EMI but increases total interest substantially — a 7-year loan can cost 40–50% more interest than a 4-year loan on the same amount. The 20-4-10 rule suggests capping tenure at 4 years if you can.