CAR FINANCE · WORLDWIDE
See the monthly cost of financing a car, and how it changes with the loan term and interest rate.
A car EMI is the fixed monthly amount you pay to finance a vehicle purchase. It's calculated the same way as any other secured loan installment, using the loan amount, interest rate, and repayment term.
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.
Dealership financing offers can look attractive upfront but sometimes bundle a higher interest rate into a lower advertised monthly payment by stretching the term. Running the same amount through this calculator at a bank or credit union's rate is a quick way to sanity-check an offer.
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 comes to about 16,801 a month, with total interest of roughly 208,089 across the loan term.
Dealership offers sometimes include add-ons like extended warranties, service packages, or a different interest rate than initially quoted, all of which change the EMI. Comparing the base loan amount, rate, and term here can help you see the underlying numbers.
It depends on the rate and terms each offers for your credit profile — there's no universal answer. Comparing both using the same loan amount and term here shows which one produces a lower EMI and total interest.
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.