Car Loan EMI Calculator
Figure out the true monthly cost of your new or used car — including total interest.
Smart Car Financing
Enter the car loan amount (after down payment), rate, and tenure. We show the EMI and total interest. Cars are depreciating assets — long tenures can put you underwater (owing more than the car is worth). Keep car loans to 4–5 years max.
Avoid These Car Loan Mistakes
- Don't stretch to 7 years — you'll be paying for a 3-year-old car for another 4 years.
- Negotiate the car price first, then the loan. Dealers often pad the price to offer 'zero interest'.
- Avoid add-ons rolled into EMI (extended warranty, paint protection) — they make poor use of financing.
- Prepay from bonuses — car loans often have 2–4% prepayment penalty; check before.
Frequently Asked Questions
What are typical car loan rates?
New cars: 8.75–10.5% p.a. Used cars: 12–16% p.a. Rates depend on credit score, age of vehicle, and lender. Check with banks, NBFCs, and dealer-financed offers.
Typical car loan tenure?
3–7 years. Longer tenure lowers EMI but you pay more interest and risk being 'underwater' (loan > car value) by year 3 on a 7-year loan.
Down payment for a car loan?
Minimum 10–15%, standard 20–30%. Larger down = smaller EMI and faster equity in the vehicle. Cars depreciate 15–20% in year one.
Is car loan interest tax-deductible?
For salaried individuals, no. For business owners who use the car for business, yes — as a business expense under Section 37.