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Car Loan Calculator

Plan your car loan EMI and total interest before you sign. Adjust any input below and your results update instantly.

Your details

Adjust the inputs below and your results update instantly.

On-road price (₹)*

≈ ₹10.00 L

The full on-road cost of the car, including registration and insurance, before any down payment.

₹3L₹50L

e.g. ₹10,00,000 for a mid-size car

Down payment (%)*

The portion of the car's price you'll pay upfront: car loans often allow 0% down, unlike home loans.

0%50%

e.g. 10% down payment

Interest rate (% p.a.)*

The annual interest rate offered on your car loan.

7%14%

e.g. 9% for a car loan

Loan tenure (years)*

Car loans are typically repaid faster than home loans.

e.g. 7 years

Annual depreciation rate (%)*

How much the car's value drops each year: new cars typically lose 15–20% of their value annually in the first few years.

5%25%

e.g. 18% per year

How these compare

vs. typical India long-term ranges

Interest rate: 9%

Typical car loan rate: 8–11%

Typical

Depreciation rate: 18%/yr

Typical car depreciation: 12–18%/year

Typical

These are example numbers. Edit any input on the left to see your own.

Your monthly EMI is

₹14,480

over 7 years

Down payment

₹1.00 L

Loan amount

₹9.00 L

Your loan balance exceeds your car's value until year 4: if you sold or totaled the car before then, you'd owe more than it's worth.

Loan balance vs. car's value

Loan balanceCar's value

Principal vs. interest, by year

PrincipalInterest

How much of that year's EMI payments went toward principal vs interest. Hover a bar for exact figures.

Year-by-year amortization

"% of principal repaid" shows how much of your loan you've paid off by that year.

YearOutstanding balanceInterest paid so farStatus

1₹8.03 L₹77,076

11% loan repaid

11% of principal repaid

2₹6.98 L₹1.45 L

22% loan repaid

22% of principal repaid

3₹5.82 L₹2.03 L

35% loan repaid

35% of principal repaid

4₹4.55 L₹2.50 L

49% loan repaid

49% of principal repaid

5₹3.17 L₹2.86 L

65% loan repaid

65% of principal repaid

6₹1.66 L₹3.08 L

82% loan repaid

82% of principal repaid

7₹0₹3.16 L

100% loan repaid

100% of principal repaid

Compare scenarios

See how down payment and tenure changes move your underwater period.

Your plan

10% down · 7y

4 yrs

Years underwater

Baseline

Down payment 20%

20% down · 7y

0 yrs

Years underwater

-4 yrs

Tenure 5y

10% down · 5y

0 yrs

Years underwater

-4 yrs

Worked example, using your numbers

A step-by-step walkthrough of how your car becomes your EMI.

Step 1 · Loan amount

After a ₹1.00 L down payment on your ₹10.00 L car, your loan amount is

₹9.00 L

Step 2 · Monthly rate

Your 9% annual rate converts to a monthly rate of

0.750%

Step 3 · EMI formula

Applying the EMI formula across 84 monthly instalments gives you

₹14,480

✓

Your ₹10.00 L car needs an EMI of ₹14,480, and you'd be underwater on the loan until year 4.

Personalised insights

What your numbers reveal, and what changing them would do.

Your ₹10.00 L car needs a ₹9.00 L loan

After a ₹1.00 L (10%) down payment, that's an EMI of ₹14,480 at 9% over 7 years, with ₹3.16 L in total interest.

You're underwater on this loan until year 4

At its worst, in year 3, your car is worth ₹5.51 L while you still owe ₹5.82 L. After year 4, your car's value stays ahead of your loan balance.

Raising your down payment to 20% cuts your underwater period to 0 yrs

Putting down ₹2.00 L instead of ₹1.00 L shrinks your loan to ₹8.00 L, changing years underwater from 4 yrs to 0 yrs.

26% of your total repayment is interest

₹9.00 L borrowed becomes ₹12.16 L repaid: the difference, ₹3.16 L, is the cost of borrowing.

How this is calculated

Every step of the math behind your result, shown in the open.

Loan amount after down payment

V_0 = on-road price, d = down payment (%), L = loan amount

Your down payment (d) is subtracted from the car's on-road price (V_0). The lender finances the remainder as your loan amount (L).

Example: ₹10.00 L − ₹1.00 L down payment → ₹9.00 L loan

The car's depreciating value

V_0 = on-road price, δ = annual depreciation rate, t = years, V_t = value after t years

Each year, the car retains only (1 − δ) of its previous value, a constant annual depreciation rate compounding downward, the mirror image of compound growth.

Example: ₹10.00 L depreciating 18%/year for 7 years → ₹2.49 L

The EMI formula

L = loan amount, r_m = monthly rate, n = number of months

This formula spreads your loan amount (L) into n equal monthly instalments, each covering that month's interest plus a growing share of the principal.

Example: ₹9.00 L over 84 months at 0.750%/month → ₹14,480 EMI

Assumptions

The interest rate stays fixed for the entire tenure: floating-rate resets aren't modeled.
The car depreciates at a constant annual rate: real depreciation curves are steeper in year one and flatten later.
No prepayments or missed instalments are made during the tenure.
Figures exclude insurance renewals, maintenance, and other running costs, not financial advice.

Understanding your car loan

The concept, the motivation, and what to watch out for.

What is a car loan EMI?

A car loan finances the portion of a car's on-road price you don't pay upfront as a down payment. You repay the rest, with interest, as a fixed monthly EMI.

Unlike a home, a car loses value fast from the moment you drive it off the lot. If your loan balance falls slower than the car's value drops, you can end up owing more than the car is worth, a state known as negative equity, or being "underwater" on the loan.

Cars depreciate faster than loans amortize, at first

In the early years, your EMI barely dents the loan balance while the car's value drops quickly. This is when you're most likely to be underwater.

The underlying EMI math is the same as any loan

Once you know your loan amount, rate, and tenure, a car loan EMI is calculated exactly like any other EMI-based loan — this car loan EMI calculator runs the same formula instantly using your numbers.

Insurance and maintenance aren't in this number

The EMI above only covers financing. Comprehensive insurance, registration, and maintenance typically add 8-12% of the car's price every year on top of what you see here.

Did you know?

A few facts behind car loans and depreciation.

-20%

Driving off the lot can cost you instantly

Many new cars lose 15–20% of their value the moment they're registered and driven away, before any wear at all.

Zero down payment carries the most risk

Financing the full on-road price means your loan balance starts exactly at the car's value: any depreciation at all immediately puts you underwater.

GAP

GAP insurance exists for this exact risk

Guaranteed Asset Protection (GAP) insurance can cover the difference between your car's insured value and your outstanding loan if it's totaled while you're underwater.

-2y

Shorter tenures are the best defence

Since depreciation happens on a fixed schedule regardless of your loan, paying down the balance faster with a shorter tenure is the most reliable way to avoid negative equity.

Frequently asked questions

Straight answers to the questions we hear most about car loans.

What does it mean to be "underwater" on a car loan?

Being underwater (or in negative equity) means your outstanding loan balance is higher than your car's current market value. If you sold or totaled the car at that point, the payout wouldn't cover what you still owe.

Why do cars depreciate so quickly?

New cars lose value the moment they're driven off the lot, often 15–20% in the first year alone, because they're no longer "new," and depreciation continues at a slower but steady pace afterward.

How does my down payment affect negative equity?

A larger down payment means you borrow less relative to the car's value from day one, which shortens or eliminates the period where your loan balance exceeds the car's depreciated value.

Does a shorter tenure help avoid being underwater?

Yes. A shorter tenure means your loan balance drops faster, which usually shortens the underwater period even though depreciation continues at the same rate.

Does this include registration, insurance, or accessories?

The on-road price already includes registration and insurance. This car loan EMI calculator estimates only the loan EMI on the amount financed, not any further costs.

Is this financial advice?

No. This tool provides indicative estimates based on your assumptions. Consult your lender or a certified financial advisor before making borrowing decisions.