CAR LOANS · WORLDWIDE
Compare how a lower down payment or a longer term changes your monthly car loan installment.
A car loan EMI is the fixed monthly payment on money borrowed to buy a vehicle, with the car itself usually held as collateral until the loan is repaid. Because the loan is secured, rates tend to sit between the low rates of home loans and the higher rates of unsecured personal loans.
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.
A car depreciates from the day you drive it off the lot, so it's worth checking that your loan term doesn't outlast the car's useful resale value. Try shortening the tenure here to see how much that raises the monthly installment versus how much it cuts total interest.
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-year term.
It's generally safer to keep the loan term at or below how long you expect to keep the car, so you're not still paying off a vehicle you've already sold or that's lost most of its value.
Yes — a larger down payment reduces the principal you're borrowing, which directly lowers both your EMI and the total interest paid over the loan term.
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.