Car loan EMI calculator
Enter the on-road price, your down payment, the rate and tenure. See the EMI and the car's total cost.
- Down payment included
- Total cost of the car
- Free, no sign-up
Car loans and tax
For most salaried people, car loan interest doesn't reduce tax. There are exceptions.
Questions people often ask
Can a salaried person claim car loan interest?
No, unless the car is used for a business or profession you run.
Does an electric car loan help?
Section 80EEB, for EV loans sanctioned between April 2019 and March 2023, is no longer open to new loans.
How your car loan works
Your down payment sets the loan.
- Loan = on-road price − down payment.
- The EMI repays it with interest over the tenure.
- The car's total cost = down payment + all EMIs.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Reserve Bank of India: loans and borrowers Reserve Bank of India
Common questions
How is a car loan EMI calculated?
The loan is the on-road price less your down payment. EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the yearly rate ÷ 12 and n the months.
What is the EMI on an ₹8 lakh car loan?
At 9% for 5 years, about ₹16,607 a month, with about ₹1.96 lakh of interest.
How much down payment should I make?
Lenders often fund 80% to 90% of the on-road price. A bigger down payment means a smaller EMI and less interest.
What is the on-road price?
The ex-showroom price plus registration, road tax, insurance and other charges. It's what you actually pay to drive the car away.
Is a 7-year car loan a good idea?
The EMI is lower but you pay much more interest, and the loan may outlast the car's best years. Shorter is usually cheaper.
Can I prepay a car loan?
Most lenders allow it. Fixed-rate car loans may carry a prepayment charge; check your loan agreement.
