Car Loan Calculator
EMI, on-road cost and the real price of financing a car.
Car loans in India run 8.7-12% for 3-7 years, funding 80-90% of the on-road price. A ₹10 lakh loan at 9.5% for 5 years costs an EMI of about ₹21,000 and ₹2.6 lakh in interest — on an asset that loses roughly 15% of its value every year.
Your Inputs
Monthly EMI
Principal
₹9.60 L
Interest
₹2.50 L
Total interest
₹2,49,707
Total cost of ownership
₹14,49,707
Formula used
EMI = P x r x (1+r)^n / ((1+r)^n - 1)
How this works
Watch the true rate, not the flat rate
Dealers sometimes quote a flat rate on the original loan amount. A 6% flat rate over 5 years is close to 11% on a reducing balance. Always ask for the reducing-balance rate and the APR including processing charges.
Insurance and add-ons inflate the loan
Extended warranty, accessories and multi-year insurance are frequently financed into the loan, where you pay interest on them for years. Pay for consumables in cash and keep the loan to the vehicle itself.
Frequently asked questions
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