Car Loan EMI Calculator
Compute your monthly car loan EMI, total interest payable, and overall cost in seconds. Works for new and used car loans from SBI, HDFC, ICICI, Axis, Kotak and more.
Calculate Your Car Loan EMI
What Is a Car Loan EMI?
A Car Loan EMI (Equated Monthly Instalment) is the fixed amount you pay every month to the bank or NBFC until the loan is fully repaid. Each EMI is split into two parts — the principal repayment and the interest charge. In the early years, the interest portion dominates; toward the end, the principal portion takes over.
Indian banks typically finance 80%-90% of the ex-showroom price of a new car, with the rest covered by your down payment. Loan tenures range from 12 months to 84 months, with 5 years being the most common choice for new-car buyers.
How Is Car Loan EMI Calculated?
The standard EMI formula used by every Indian bank is:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly instalments (years × 12)
Example: For a ₹8,00,000 loan at 9.5% per annum for 5 years, the monthly rate r = 0.0079, n = 60. The EMI works out to ₹16,798 per month, with total interest of ₹2,07,894.
Indicative Car Loan Interest Rates (2025)
| Lender | Interest Rate (p.a.) | Max Tenure | Processing Fee |
|---|---|---|---|
| SBI | 9.05% – 10.05% | 7 years | 0.40% – 0.50% |
| HDFC Bank | 9.20% – 10.50% | 7 years | ₹4,999 onwards |
| ICICI Bank | 9.10% – 11.25% | 7 years | 0.50% – 2% |
| Axis Bank | 9.30% – 11.50% | 7 years | ₹3,500 – ₹5,500 |
| Kotak Mahindra | 9.25% – 11.75% | 7 years | 0.50% – 1% |
| Bank of Baroda | 8.70% – 12.05% | 7 years | 0.25% – 0.50% |
| Canara Bank | 8.70% – 11.70% | 7 years | 0.25% capped |
Rates indicative; final rate depends on credit score, loan amount, and bank policy.
Tips to Lower Your Car Loan EMI
- Make a larger down payment — 25-30% upfront cuts principal sharply, slashing total interest.
- Pick a shorter tenure if EMI affordability allows — saves lakhs in interest over the loan life.
- Compare lenders — even a 0.5% rate difference saves ₹15,000-25,000 on a ₹8 lakh loan over 5 years.
- Improve your CIBIL score — borrowers with 750+ score get the best published rates.
- Negotiate processing fees — many banks waive or discount fees during festive seasons.
- Prepay when you can — even one extra EMI per year can shave 4-6 months off the tenure.