Car Loan EMI Calculator
Car Loan EMI Calculator lets you quickly calculate your monthly EMI, interest rates, and loan eligibility. Whether purchasing a new or used car, it ensures accurate results and helps you find the best car loan offers.
Car Loan EMI Calculation Formula
The EMI for any type of loan is essentially calculated using a formula. The formula is as follows:
E = P x R x (1+R)^n / {(1+R)^n – 1}
where ‘E’ stands for the EMI you owe,‘P’stands for the principal amount,‘R’stands for the interest rate applicable to your car loan,and ‘n’stands for the tenure of the car loan (in months).
Bank-Wise Car Loan Interest Rates Comparison
Compare car loan interest rates from top lenders and choose the best option for your needs.
Name of the bank | Interest Rate (p.a.) |
8.70% p.a. onwards | |
9.15% p.a. onwards | |
9.10% p.a. onwards | |
8.70% p.a. onwards | |
9.00% p.a. onwards | |
9.10% p.a. onwards | |
9.40% p.a. onwards | |
8.75% p.a. onwards |
Note: GST rates will be applicable over and above the rates charges mentioned above.
What is a Car Loan EMI Calculator?
Nowadays, it is much easier to buy your dream car due to the various car loan schemes offered by different lenders. Car loans are offered at attractive interest rates and a repayment tenure of up to 8 years.
Various banks and third-party websites offer a Car Loan EMI Calculator that allows you to calculate the Equated Monthly Instalments (EMIs) that must be paid. BankBazaar's version is free and simple to use.
Basic details such as the repayment tenure, principal amount, and the rate of interest must be entered to calculate the Car Loan EMI. Use the BankBazaar Car Loan EMI Calculator to find your monthly payment. It shows your EMI in seconds. You also get a full repayment table with the principal, interest, and balance after each payment.
How to Use the Car Loan EMI Calculator
The procedure that must be followed to use the Car Loan EMI calculator offered by BankBazaar is mentioned below:
- The calculator can be found on the top of this page. The first step would be to select the loan amount.
- Next, select the repayment tenure.
- Enter the rate of interest
- Enter the processing fee. The results will be displayed immediately.
You can check the principal amount and the interest that is being paid every year. The calculator also provides the outstanding balance at the end of every year.
Benefits of Using BankBazaar’s EMI Calculator
The main benefits of using a car loan EMI calculator are mentioned below:
- Break-Up of the Due Amount is Provided: The car loan EMI calculator helps you calculate the processing fees, interest that is paid, the total amount that must be paid, and the principal amount.
- Your Budget can be Planned: Once you know the EMI that must be paid, you can plan your budget accordingly. In case the loan amount that is being availed is large, you may think of opting for a longer tenure. These details can be determined by using the car loan EMI calculator.
- Accuracy: For the details that are being provided on the calculator, the results that are displayed are accurate. Manual calculations may not provide accurate results.
- Saves Time: The main aim of the Car Loan EMI calculator is to save time. Once the relevant details are entered, the results are displayed almost immediately.
- No Limit: There is no limit to the number of times the calculator can be used. Therefore, you use the calculator with different variants. This can help you choose the best lender and the down payment that must be paid.
- Compare: As there is no limit to the number of times that the calculator can be used, you can compare the EMIs for different values.
Factors Affecting Car Loan EMI Calculation
- Car loans are offered at fixed as well as floating interest rates.
- The fixed rate will remain unchanged for the tenure of the loan, but the floating rate is subject to change from time to time.
- The different factors that can affect interest rates include applicable taxes, liquidity, inflation, etc.
Car Loan EMI Types: Fixed vs Floating Rate Comparison
EMI Calculation Type | Description | Example |
Fixed Rate EMI Calculation |
|
|
Floating Rate EMI Calculation |
| You take a Rs.5 lakh loan for 3 years at 10%. Your EMI is Rs.16,134. After 1 year, your balance is Rs.3,36,409. The rate then drops to 8%. Your new EMI for the rest of the term becomes Rs.15,215. |
Note: This loan's interest rate is variable, meaning it can fluctuate up or down based on the market.
FAQs on Car Loan EMI Calculator
- What is Equated Monthly Installment?
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay each month to repay your loan. Car loan EMI includes both the principal and the interest. You pay it every month until the loan is fully repaid.
- What is the best tenure for a car loan?
The best tenure for a car loan is 3-5 years, balancing affordable EMIs and minimizing total interest.
- Can I reduce my car loan EMI?
You can reduce your car loan EMI by opting for a longer tenure, making a larger down payment, or refinancing the loan.
- What factors affect car loan EMI calculation?
Car loan EMIs are influenced by the type of interest rate fixed or floating. While fixed rates stay constant, floating rates can change based on factors like inflation, liquidity, tax policies, and RBI regulations, which in turn affect your monthly EMI.
- Which bank offers the lowest car loan interest rate?
Banks like Union Bank of India and Canara Bank offer competitive car loan interest rates starting from 8.70% p.a.
- What are the benefits of using an online Car Loan EMI Calculator?
The results are instant and accurate whereas manual EMI calculations are prone to human error and are time consuming. You can also input varying combinations of the loan amount, loan tenure, and interest rates to get revised results.
- Are there any charges levied to use a car loan EMI calculator?
No charges are levied to use a car loan EMI calculator.
- How does a Car Loan Repayment Table Help You Understand Your EMI?
A car loan repayment table helps you understand your EMI by showing a clear breakdown of principal and interest payments over the loan tenure.
- What details must be entered to get the results in case a car loan EMI calculator is used?
The interest rate, processing fee, loan amount, and tenure must be entered to get the results in case a car loan EMI calculator is used.
Annie Jangam is a financial writer with a unique background in biotechnology and eight years of genomics research experience, culminating in 6 international publications. She combines her analytical and communication skills to simplify complex financial concepts, delivering precise and creatively engaging content in the fintech industry. She covers various financial products such as banking, insurance, credit cards, tax, commodities, and more. Outside of the financial realm, she dabbles in poetry. Her extracurricular passions include organizing events like One Billion Rising and Human Rights Day. She is committed to the equality of all people, a principle rooted in her Christian faith. Annie strives to embody the values of faith, hope, and love in both her work and her life. |
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