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Enter the on-road price, your down payment and interest rate — we’ll compute your exact monthly EMI, total interest and amortisation in seconds.
EMI math hasn’t changed in 70 years — the same reducing-balance formula every Indian bank uses, three steps then a worked example.
Your loan principal is on-road price minus your down payment. Most banks expect 10–25% down for new cars and 25–40% for used.
Annual rate ÷ 12 gives monthly rate (r). Years × 12 gives total instalments (n). Same input, different units — this is what trips most spreadsheets.
The standard reducing-balance formula. Each EMI pays a chunk of interest first and a chunk of principal — principal share rises over time.
P is the principal (loan amount), r is the monthly interest rate (annual ÷ 12 ÷ 100), and n is the number of monthly instalments. RBI mandates reducing-balance EMI for all retail loans in India — flat-rate quotes are not legally permissible without disclosure.
principal = price − downPayment
r = rate / 12 / 100
n = years × 12
EMI = principal × r × (1+r)^n ÷ ((1+r)^n − 1)
totalInterest = EMI × n − principalThe reducing-balance formula here is the same one mandated by the RBI Master Direction on retail lending. Rate, tenure and processing-fee ranges reflect what major Indian banks — SBI, HDFC, ICICI, Axis — were quoting at FY 2025-26 publication, cross-checked against BankBazaar and Paisabazaar aggregators.
Reducing-balance interest mandate for all retail loans — flat-rate must carry equivalent APR disclosure.
Indian Banks Association model loan agreement with standardised EMI computation across PSU and private banks.
Headline rates and processing fees used to seed sample-range defaults (9–12% new, 12–16% used).
Rate aggregators cross-validating live offers across PSU, private and NBFC car-loan products.
Motor TP premium and comprehensive cover ranges used for the annual insurance default.
Reducing-balance EMI derivation and amortisation theory — cross-reference for the formula above.
Sample monthly EMI and total interest for common car prices and tenures at typical bank rates. Use as a sanity check, not a loan quote.
| Car price | Down 20% | Principal | Rate | Tenure | EMI /mo | Total interest |
|---|
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