Car Loan EMI Calculator

What is Car Loan EMI?

Car Loan EMI (Equated Monthly Installment) is the fixed amount you pay each month to the lender (bank or NBFC) to repay your car loan. This payment includes both the principal amount borrowed and the interest charged on the outstanding loan balance.

How Car Loan EMI is Calculated

The calculation uses the standard EMI formula based on the reducing balance method:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n – 1]

Where:

• P = Principal Loan Amount (Car price minus down payment)
• r = Monthly Interest Rate (Annual Rate / 12 / 100)
• n = Loan Tenure in Months (Years * 12)

Factors Affecting Car Loan EMI

• Loan Amount: The higher the amount financed, the higher the EMI.
• Interest Rate: Car loan interest rates vary based on your credit score, income, and the lender's policies. A higher rate means a higher EMI.
• Loan Tenure: Car loans typically have shorter tenures (up to 7 years). A shorter tenure increases the EMI but reduces the total interest paid.

Disclaimer: This calculator provides an estimate. Actual EMI may vary based on the lender's calculation method, processing fees, and other charges. Always confirm the final EMI and loan terms with the lender.