Car Loan EMI Calculator – Calculate Monthly Payments Free
Car Loan EMI Calculator
Work out your exact monthly car loan payment in seconds — just enter the loan amount, interest rate and tenure.
Calculate Your Car Loan EMI
Enter your loan details below — the EMI, total interest and total payment update as you type.
Car loan EMI Calculator is a variant of emi loan calculator which does the same work as an emi loan calculator but for cars. Whether you call it an emi calculator car loan tool or simply a car loan calculator, it works the same way. Just type in your loan amount, interest rate, and tenure and the calculator will show your monthly payable amount. You can also use this emi calculator for car loan planning to compare a new vs used car loan cost, or to check how a fixed rate stacks up against a floating one before you sign.
For how the EMI formula itself works, see our full Loan EMI Calculator. The math is identical, only the inputs below are shaped around how car loans actually get sanctioned. If you want to see how each payment splits between principal and interest over time, our loan amortization schedule lays it out month by month.
Here's what a few real car loan scenarios look like
| Loan Amount | Interest Rate | Tenure | Car Type | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|---|---|---|
| ₹10,00,000 | 8.5% | 7 years | New | ₹15,836 | ₹3,30,265 | ₹13,30,265 |
| ₹15,00,000 | 7.5% | 7 years | New | ₹23,007 | ₹4,32,623 | ₹19,32,623 |
| ₹5,00,000 | 9.5% | 5 years | Used | ₹10,501 | ₹1,30,056 | ₹6,30,056 |
| ₹7,00,000 | 10.5% | 5 years | Used | ₹15,046 | ₹2,02,744 | ₹9,02,744 |
New Car vs. Used Car Loans
New and used car loans are not sanctioned the same way. New car loans typically finance up to 100% of the on-road price, with tenure stretching to 7-8 years and rates starting from around 7.40% p.a. at major banks. A used car loan is more conservative: financing usually caps at 80-85% of the car's value, tenure tops out around 5 years, and rates run noticeably higher. Keep that in mind when comparing the two, since a used car won't give you the same leverage as a new one. Before you commit, it's also worth checking your debt-to-income (DTI) calculator to see how a car EMI fits into your overall repayment capacity.
Fixed vs. Floating Car Loan Rates
Car loans are available at both fixed and floating rates, and neither is better by default. A fixed rate stays the same for the full tenure, so your EMI never changes. A floating rate moves with the lender's benchmark (tied to the RBI repo rate or MCLR), which means your EMI can rise or fall over the life of the loan. Floating rates usually start lower than fixed ones on the same loan. Choose the one that fits your budget and how much uncertainty you can handle.
Can You Prepay a Car Loan Without Penalty?
Yes, since January 1, 2026. If you're an individual borrower and the car is for personal use, not business, you can pay off your car loan early without a prepayment penalty. This applies whether your loan is at a fixed or floating rate.
Before this date, the rule was different. Only floating-rate loans got this protection. Fixed-rate car loans could still be charged a fee, usually 2-6% of the remaining loan amount, for paying early.
If your loan started before January 1, 2026, check your loan papers. The new rule only applies to loans sanctioned or renewed on or after that date. You can read the rule in the Reserve Bank of India's published directions on prepayment charges.
Frequently Asked Questions
How much down payment do I need for a car loan?
For a new car, many lenders finance roughly up to 100% of the on-road price, so a down payment isn't strictly required, though a larger down payment lowers your EMI and total interest. For a used car, expect to cover 15-20% of the car's value yourself, since lenders typically cap financing at 80-85%.
Can I get a loan against a car I already own?
Yes, this is different from a car purchase loan. It's a loan against an existing vehicle as collateral, useful when you need funds and don't want to sell the car outright. Terms and rates differ from a standard car loan; check with your lender for specifics.
Does a used car loan have a higher interest rate than a new car loan?
Generally yes. Used car loans carry more risk for the lender (older asset, lower resale value), so rates typically run 1-2% higher than new car loans from the same bank.
What credit score do I need for the best car loan rate?
Roughly a CIBIL score of 750 or above is commonly cited as the threshold for the best available rates. Below that, you may still qualify, but likely at a higher rate.
Is there a prepayment penalty on my car loan?
Since January 1, 2026, no, not if you're an individual borrower using the car for personal (non-business) purposes, regardless of fixed or floating rate.