# Car Loan Calculator

A car loan is a type of loan that an individual secures from a financial institution like a bank for purchasing a car. Today, everyone has a car and truth be told, it has become a necessary personal asset in today’s hectic and fast-paced lifestyle. You can consider buying a first-hand car or a used one; whatever fits your budget. It would all depend on your needs. You can repay the loan in the form of EMIs.

If you default on the loan, your credit score will take a hit; in the worst-case scenario, the lender could end up seizing your car to compensate for their loss. The good part is that today, banks offer car loans at affordable interest rates and tenures so that you don’t have to go that extra mile and stretch your budget. The car loan EMI is made up of the principal and interest portion of the loan. The EMI would remain a fixed amount and will be paid in the form of instalments on a monthly basis.

Want to determine the exact number of monthly installments of your car loan? Then a Car Loan EMI calculator is what you need. By using a Car Loan EMI calculator, you can easily know the amount which you must borrow along with the interest rate as well as the Car Loan EMIs. All you need to do is fill in the loan amount, tenure, and the interest rate. As you enter these details, the EMI amount will reflect in front of your respective screen.

0

20L

5

7.5

10

12.5

15

17.5

20

12

24

36

48

60

72

84
Loan EMI
Total Interest Payable
Total Payment
(Principal + Interest)
Interest Percentage

## Here's the formula to calculate the Car Loan EMI: Where

E is EMI

P is Principal Loan Amount

N Loan tenure in months

R Monthly interest rate

The rate of interest (R) on your loan is calculated per month.
R = Annual Rate of interest/12/100

For example : you take a car loan of Rs 5 lakh at an interest rate of 12%, the approximate EMI will be

EMI = ₹5,00,000 * 12/100/12 * (1+12/100/12)24 / (1+12/100/1224 - 1)
= ₹23,537.

### How to use Car Loan EMI Calculator?

• Enter the loan amount
• Select the number of months using the slider
• Select the interest rate using the slider
• You will get the EMI Payable, Total interest payable along with the Total Payable Amount
• If you want then you can easily recalculate the amount, all you need to do is change the amount in the sliders

### Benefits of Car Loan EMI Calculator

• You get clarity on the EMI amount that you would be paying the lender.
• It also helps you get your finances in order.
• There is no need to do complex calculations as the calculator’s software does that for you.
• It also helps you get a fair idea of the tenure you will have to pay the EMIs for, the shorter the duration the higher the amount of the EMI and the longer the duration, the lesser the amount of the EMI