AUTO FINANCE · WORLDWIDE
Model monthly payments on a vehicle loan before you visit the dealership.
An auto EMI is the fixed monthly installment on a vehicle loan, covering both principal and interest. Working it out before you negotiate a price means you're deciding what you can afford first, rather than fitting your budget around whatever a dealer proposes.
Enter your loan amount, interest rate, and term, and compare the advance and arrears repayment schemes below.
Both schemes charge the same interest rate on the same loan. The only difference is when each installment falls due — and that timing changes how much interest accrues over the life of the loan.
Knowing your expected monthly payment before you negotiate gives you a firm number to work backward from — you can decide the loan amount and term that fit your budget first, then let that guide the price you're willing to pay.
The first installment is deducted at disbursement, before any interest has accrued. Every later installment is then calculated on a slightly lower balance, so total interest paid over the loan is a little lower.
The first installment falls due one month after disbursement, after a full month of interest has already built up. This is the more common structure for most loans.
EMI = P × R × (1+R)ⁿ ÷ [(1+R)ⁿ − 1], where P is the loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly installments.
For a loan of 800,000 over 60 months at 9.5% annual interest, the EMI is about 16,801 a month, with total interest of roughly 208,089 over the five years.
A shorter term means a higher EMI but less total interest paid; a longer term lowers the EMI but increases total interest. Try a few different term lengths here to see which balance fits your monthly budget and total cost tolerance.
Negotiating the price (and therefore the loan amount) generally protects you better than negotiating only the monthly payment, since a low payment can be reached by simply extending the term rather than lowering the price.
EMI stands for Equated Monthly Installment — a fixed payment made each month toward a loan, made up of a portion of the principal and a portion of interest. The size of each portion changes over time, but the total payment stays the same for the life of the loan.
In the advance scheme, your first installment is deducted at disbursement, before any interest has accrued, so total interest ends up slightly lower. In the arrears scheme (the more common structure), the first installment falls due one month after disbursement, after a full month of interest has already built up.
No. All calculations happen directly in your browser using JavaScript. Nothing you enter is saved, uploaded, or sent to any server.
Yes. The currency dropdown covers 173 countries, and the language dropdown covers 30 languages. The calculator also tries to detect your language and currency automatically from your browser settings when the page loads — you can always change either manually.
This calculator gives an accurate estimate based on the numbers you enter, but real loans often include processing fees, insurance, or other charges that aren't part of the base EMI formula. Confirm the exact terms with your lender before borrowing.