Car Loan EMI Calculator
Plan your car loan EMI, total interest, and pick the tenure that fits your budget.
About the Car Loan EMI Calculator
Most new cars in India are bought on loan, and the EMI is the number that quietly decides which model you actually drive home. The AlarmDaddy Car Loan EMI Calculator gives you the exact monthly instalment, the total interest you will pay, and a comparison view across tenures so you can see, for example, what jumping from a 5-year to a 7-year tenure costs you in extra interest.
Enter the on-road or ex-showroom amount you plan to finance (after your down payment), the annual interest rate from your dealer or bank, and the tenure in years. Indian car loan rates in 2026 typically range from 8.5% to 11% depending on whether the car is new, the bank, and your credit score. Used-car loans are generally a percentage point or two higher.
This calculator is useful both before you visit a dealer (so you know what EMI you can comfortably afford) and at the dealership itself (so you can sanity-check the EMI the financier is showing you on his computer). Couple it with the linked loan-eligibility calculator to see what loan amount you actually qualify for given your income.
How to use this calculator
- 1Decide your down payment and subtract it from the on-road price to get the loan amount.
- 2Enter the loan amount (principal) into the calculator.
- 3Enter the annual interest rate. New car loans in India in 2026 are usually 8.5% to 11%.
- 4Enter the tenure in years (3 to 7 is typical).
- 5Compare the EMI and total interest across different tenures to see which one fits your budget.
The formula
Same reducing-balance formula every Indian bank uses for car loans. P is the loan amount (after down payment), R is the monthly interest rate, and N is the tenure in months. Car loans differ from home loans only in shorter typical tenures (3-7 years) and slightly higher rates.