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Free Tool · FY 2025-26

Free Car Loan EMI Calculator For India 2026

Enter the on-road price, your down payment and interest rate — we’ll compute your exact monthly EMI, total interest and amortisation in seconds.

Reducing-balance EMI RBI-compliant formula Live amortisation
Car Loan EMI Calculator
FY 2025-26
01

Vehicle cost & down payment

₹
₹
₹
Results update automatically as you type
LIVE CALCULATION
24.3%
INTEREST OF TOTAL
Monthly EMI₹16,791
Total interest₹2,07,464
Total payable₹10,07,464
On-road price₹10,00,000
Down payment₹2,00,000
Loan principal₹8,00,000
Total interest (over 5 yrs)₹2,07,464
Processing fee (1%)₹8,000
Insurance (5 yrs)₹1,25,000
Total cost of ownership₹13,40,464
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1) → P=8,00,000, r=0.79%/mo, n=60 → ₹16,791/mo
Reducing-balance EMI as mandated by RBI Master Direction for all retail loans. Numbers refresh on every keystroke.

The formula, step by step

EMI math hasn’t changed in 70 years — the same reducing-balance formula every Indian bank uses, three steps then a worked example.

01

Subtract down payment

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.

principal = price − downPayment
02

Convert rate & tenure

Annual rate ÷ 12 gives monthly rate (r). Years × 12 gives total instalments (n). Same input, different units — this is what trips most spreadsheets.

r = rate/100/12 | n = years × 12
03

Apply the EMI formula

The standard reducing-balance formula. Each EMI pays a chunk of interest first and a chunk of principal — principal share rises over time.

EMI = P × r × (1+r)^n / ((1+r)^n − 1)
THE FULL FORMULA

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1)

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 − principal
WORKED EXAMPLE · YOUR INPUTS
Price ₹10,00,000 − Down ₹2,00,000 = Principal ₹8,00,000
EMI = ₹16,791/mo · Total interest ₹2,07,464 over 5 yrs

Methodology & sources

The 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.

01

RBI Master Direction

REGULATOR

Reducing-balance interest mandate for all retail loans — flat-rate must carry equivalent APR disclosure.

02

IBA Model Code

INDUSTRY BODY

Indian Banks Association model loan agreement with standardised EMI computation across PSU and private banks.

03

SBI / HDFC Car Loan

BANK REFERENCE

Headline rates and processing fees used to seed sample-range defaults (9–12% new, 12–16% used).

04

BankBazaar & Paisabazaar

COMPARISON

Rate aggregators cross-validating live offers across PSU, private and NBFC car-loan products.

05

IRDAI Motor Insurance

REGULATOR

Motor TP premium and comprehensive cover ranges used for the annual insurance default.

06

Investopedia EMI

THEORY

Reducing-balance EMI derivation and amortisation theory — cross-reference for the formula above.

Reference: car loan EMI across price bands

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 priceDown 20%PrincipalRateTenureEMI /moTotal interest

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