FREE CAR LOAN EMI CALCULATOR
Car Loan EMI Calculator
How to Use the Car EMI Calculator
Using an auto loan emi calculator shouldn’t require a finance degree. We have designed our interface to be intuitive and fast.
Step-by-Step Guide:
Enter Loan Amount: This is usually the price of the car minus your down payment.
Input Interest Rate: Enter the current rate offered by your bank. (e.g., 8.75% to 11%).
Select Tenure: Car loans typically range from 3 to 7 years.
The Result: The tool instantly processes the numbers to show your exact car loan emi. It also generates a visual chart breaking down your total repayment into “Principal” and “Interest,” giving you a clear picture of the cost of borrowing.
In this Page
On-Road Price vs. Ex-Showroom Price
A common mistake buyers make is calculating EMI based on the ex-showroom price. However, the actual loan is often needed for the final cost. This is where an emi calculator for car loan on road price becomes essential.
What is On-Road Price? It includes:
Ex-Showroom Price (The base cost)
RTO Registration Charges
Road Tax (State-specific)
Insurance Premiums (Mandatory)
Most banks finance up to 85% or 90% of the On-Road Price. When using our calculator, ensure you enter the final financing amount you need, covering these additional costs, to get a realistic monthly figure.
New vs. Used Car Loan EMI Calculator
The market for pre-owned vehicles is booming. However, loans for second-hand cars work differently than new ones.
Interest Rates: Loans for used cars generally carry higher interest rates (often 2-5% higher than new cars) because the vehicle’s value depreciates faster.
Tenure: While new car loans can go up to 7 years, used car loans are often capped at 3 to 5 years.
Our tool functions perfectly as a used car loan emi calculator. Simply adjust the interest rate slider to a higher bracket (e.g., 12% – 16%) to see how it impacts your monthly budget compared to a new car loan.
Bank Comparisons: SBI vs. HDFC
Choosing the right lender is just as important as choosing the right car.
SBI Car Loan Calculator
State Bank of India (SBI) is a preferred choice due to its transparency and lack of prepayment penalties on floating rate loans. The SBI car loan interest rate calculator logic is built into our tool. SBI rates are often linked to your CIBIL score.
Tip: Use our tool as an sbi car loan emi calculator by entering their current rack rate (e.g., 8.85%).
HDFC Car Loan Calculator
HDFC Bank offers rapid disbursal, often approved in minutes for existing customers. The HDFC car loan calculator metrics are similar, but they may offer fixed interest rates. Compare the two by keeping the loan amount constant and swapping the interest rates in our inputs to see who offers the cheaper deal.
Commercial Auto Loans Calculator
Our tool is versatile enough for commercial vehicle planning as well. If you are an entrepreneur looking to expand your fleet, you can use this as an auto rickshaw loan emi calculator.
Commercial loans often have shorter tenures (3-5 years) and different interest structures. Whether you are buying a passenger auto or a goods carrier, ensuring the EMI is lower than your expected monthly profit is crucial for business sustainability.
The Truth About Zero Percent EMI
You might see advertisements for a zero percent emi car loan or zero emi car loan. Is it real?
Often, these are marketing strategies where the manufacturer (car company) pays the interest to the bank on your behalf to clear stock (“Subvention Schemes”). However, this might mean you lose out on cash discounts or free accessories.
Reducing Balance vs. Flat Rate: Most banks use the “Reducing Balance” method. An emi calculator car loan reducing rate (which our tool uses) is the industry standard. Be wary of “Flat Rate” offers where interest is calculated on the entire principal for the whole tenure—this is much more expensive than it looks. Always insist on the Annualized Percentage Rate (APR) when comparing.
- FAQs
1. Can I prepay my car loan?
Yes, but banks may charge a foreclosure fee (usually 2-5% of the outstanding principal). However, public sector banks like SBI often waive these charges on floating-rate loans after a certain period.
2. Does the loan tenure affect my interest?
Yes. A longer tenure (e.g., 7 years) lowers your monthly EMI but significantly increases the total interest you pay. Use the chart in our calculator to visualize how the “Interest” slice grows with tenure.
3. Is this calculator accurate for all banks?
Yes. Whether you are looking for an sbi car loan calculator estimate or checking Axis Bank rates, the mathematical formula for EMI remains constant across the Indian banking system.
4. What is the CIBIL score required for a car loan?
A score above 750 usually qualifies you for the lowest interest rates. A lower score might result in a higher rate or a higher down payment requirement.