Car Loan Calculator
Our comprehensive car loan calculator helps you understand exactly how much you'll pay each month (EMI), the total interest over the loan term, and provides a complete payment schedule. Compare different loan scenarios to find the best option for your budget.
Pro Tip: A 20% down payment typically gets you better interest rates. Try adjusting the down payment to see how it affects your monthly EMI.
Car Loan Details
Understanding Car Loan Calculations
When you finance a car, you typically make a down payment (usually 10-20% of the car's value) and borrow the remaining amount. The loan is repaid through Equated Monthly Installments (EMIs) that include both principal and interest components.
EMI Formula: EMI = [P × r × (1+r)^n] / [(1+r)^n-1]
Where:
P = Principal loan amount (Car Price - Down Payment)
r = Monthly interest rate (annual rate/12/100)
n = Loan term in months
Factors Affecting Your Car Loan
- Down Payment: Higher down payment means lower loan amount and EMI
- Loan Term: Longer terms reduce EMI but increase total interest
- Interest Rate: Depends on credit score, lender, and vehicle type
- Car Depreciation: New cars depreciate faster but may get better rates
Frequently Asked Questions
Q: What's the ideal car loan tenure?
A: 3-5 years is typically recommended. Longer terms mean paying more interest, while shorter terms increase EMI burden.
Q: How can I reduce my car loan interest?
A: 1) Improve credit score, 2) Negotiate with lenders, 3) Make larger down payment, 4) Choose shorter tenure, 5) Make prepayments when possible.