Car Loan EMI Calculator

The same reducing-balance formula as any equal-installment loan, but applied to your financed amount (car price minus down payment), not the full car price: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the financed amount, r is your monthly interest rate, and n is your tenure in months.

Most lenders require a minimum of 10%-20% of the car's on-road price as down payment, and financing the maximum amount a lender allows isn't automatically the best move — a larger down payment lowers both your EMI and your total interest paid, since you're borrowing less to begin with. It's worth balancing that against keeping enough cash on hand for other near-term needs rather than maximizing the down payment purely to minimize interest.

Not for personal use — car loan interest and principal aren't tax-deductible for an individual buying a car for personal use. The exception is if you're self-employed or run a business and the car is genuinely used for business purposes, in which case loan interest and depreciation may be claimable as a business expense — this doesn't apply to a salaried employee's personal vehicle.

Yes — used car loans are typically priced higher than new car loans, often by a few percentage points, since a used vehicle depreciates faster and is worth less as collateral to the lender. Tenure is usually shorter too, reflecting the vehicle's remaining useful life.

Usually yes, but check your loan agreement for foreclosure charges first — many lenders charge a fee, commonly a percentage of the outstanding principal, particularly on fixed-rate loans. RBI rules exempt floating-rate loans to individuals for non-business purposes from prepayment penalties, so it's worth checking whether your specific loan is floating-rate before assuming a penalty applies.