Car Loan Calculator
Estimate monthly payments, total interest, and total cost for a car loan. Enter vehicle price, down payment, trade-in value, sales tax, fees, interest rate, and term.
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Car Loan Calculator India – EMI, Interest & Total Cost Breakdown
Buying a car in India is a major financial decision, whether it is your first vehicle, a family upgrade, or a replacement purchase. Most buyers choose to finance their car through an auto loan offered by banks, NBFCs, or dealership financing partners. While monthly EMI is often the primary focus, the true cost of a car loan depends on several factors such as interest rate, loan tenure, down payment, trade-in value, taxes, and registration or dealer fees.
This car loan calculator helps Indian users estimate their monthly EMI, total interest payable, total loan cost, and overall out-of-pocket expense before committing to a loan. It uses standard amortization formulas similar to those followed by Indian banks and financial institutions, giving you a realistic and transparent view of your car financing.
How a Car Loan Works in India
In India, a car loan is typically repaid through fixed Equated Monthly Instalments (EMIs) over a tenure ranging from 3 to 7 years. Each EMI consists of two components: principal repayment and interest. In the early months of the loan, a larger portion of the EMI goes toward interest, while principal repayment increases gradually over time.
The interest rate offered on car loans depends on factors such as your credit score, lender policy, loan tenure, and whether the car is new or used. Even a small difference in interest rate can result in thousands of rupees in additional interest over the loan period.
Inputs Used in This Car Loan Calculator
Vehicle Price: The on-road or ex-showroom price of the car before financing adjustments.
Down Payment: The upfront amount you pay from your own funds. A higher down payment reduces the loan amount and total interest.
Trade-In Value: The value of your old vehicle adjusted against the new car purchase, reducing the taxable and financed amount.
Sales Tax: The applicable vehicle tax rate. In India, this may represent road tax, GST, or state-specific charges depending on how the vehicle is billed.
Fees: One-time charges such as registration, documentation fees, handling charges, and dealer add-ons.
Interest Rate: The annual interest rate charged by the lender.
Loan Term: The number of years over which the loan is repaid.
Benefits of Using This Car Loan Calculator
This calculator helps you compare loan offers from banks, NBFCs, and dealerships, plan your monthly budget accurately, evaluate the impact of extra payments, and avoid unpleasant surprises during loan repayment.
It is especially useful for Indian buyers who want transparency in car financing, as it clearly separates principal, interest, taxes, and fees. All calculations are done locally in your browser, ensuring privacy and data safety.
Use this car loan calculator to make informed decisions, reduce interest burden, and choose a loan structure that aligns with your long-term financial goals.
Example: Car Loan EMI & Total Cost Calculation (India)
This example demonstrates how the car loan calculator computes the monthly EMI, total interest, and total out-of-pocket cost using realistic inputs. The calculations below follow the exact same logic used in this tool.
Example Inputs
- Vehicle Price: ₹10,00,000
- Down Payment: ₹1,50,000
- Trade-In Value: ₹50,000
- Sales Tax & Charges: 8%
- Registration & Dealer Fees: ₹25,000
- Interest Rate: 9% per annum
- Loan Term: 5 years (60 months)
Step 1: Sales Tax Calculation
Sales tax is applied to the taxable base, which is calculated as vehicle price minus trade-in value.
Taxable Base = 10,00,000 − 50,000 = 9,50,000
Sales Tax = 8% of 9,50,000 = ₹76,000
Step 2: Loan Principal Calculation
The loan principal is the actual amount financed after adjusting for down payment, trade-in value, sales tax, and dealer fees.
Loan Principal = Vehicle Price − Down Payment − Trade-In + Tax + Fees
Loan Principal = 10,00,000 − 1,50,000 − 50,000 + 76,000 + 25,000 = ₹9,01,000
Step 3: Monthly EMI Calculation
Using a 9% annual interest rate over 60 months, the calculator applies the standard EMI formula used by banks and financial institutions.
Monthly EMI ≈ ₹18,703.28
Step 4: Total Loan Cost
Total loan cost represents the full amount repaid to the lender over the loan tenure, including both principal and interest.
Total Loan Payments = ₹11,22,196.68
Total Interest Paid = ₹2,21,196.68
Step 5: Total Out-of-Pocket Cost
Total out-of-pocket cost represents the complete economic cost of buying the car. It includes upfront payments and the full loan repayment.
Total Out-of-Pocket = Down Payment + Trade-In + Fees + Total Loan Payments
Total Out-of-Pocket = 1,50,000 + 50,000 + 25,000 + 11,22,196.68 = ₹13,47,196.68
Final Results Summary
- Loan Principal: ₹9,01,000.00
- Monthly EMI: ₹18,703.28
- Total Interest Paid: ₹2,21,196.68
- Total Paid on Loan: ₹11,22,196.68
- Total Out-of-Pocket Cost: ₹13,47,196.68
- Estimated Loan Payoff: November 2030
Note: Trade-in value is included as an economic cost, even though it is not paid in cash. Insurance, fuel, and maintenance costs are not included.
Frequently Asked Questions
What is included in the loan principal?
Principal equals vehicle price minus down payment and trade-in, plus sales tax and fees.
Does this calculator include insurance?
No. Insurance and maintenance are not included. Add those separately when budgeting.
How does sales tax apply?
Sales tax is applied to (vehicle price minus trade-in) in this tool. Some regions tax differently; adjust inputs accordingly.
Is my input saved?
No. All calculations run locally in your browser and nothing is transmitted or saved.