Smart-Calce

Car Loan Calculator

EMI Details

Monthly EMI :

₹16,801

Total Amount

₹1,008,089

Interest Amount

₹208,089

Principal Amount

₹800,000

YearMonthOpening (₹)EMI (₹)Principal (₹)Interest (₹)Balance (₹)Completion (%)
2024Dec₹800,000₹16,801₹10,468₹6,333₹789,5321.31 %
2025Jan₹789,532₹16,801₹10,551₹6,250₹778,9812.63 %
2025Feb₹778,981₹16,801₹10,635₹6,167₹768,3463.96 %
2025Mar₹768,346₹16,801₹10,719₹6,083₹757,6285.3 %
2025Apr₹757,628₹16,801₹10,804₹5,998₹746,8246.65 %
2025May₹746,824₹16,801₹10,889₹5,912₹735,9358.01 %
2025Jun₹735,935₹16,801₹10,975₹5,826₹724,9599.38 %
2025Jul₹724,959₹16,801₹11,062₹5,739₹713,89710.76 %
2025Aug₹713,897₹16,801₹11,150₹5,652₹702,74712.16 %
2025Sept₹702,747₹16,801₹11,238₹5,563₹691,50913.56 %
2025Oct₹691,509₹16,801₹11,327₹5,474₹680,18214.98 %
2025Nov₹680,182₹16,801₹11,417₹5,385₹668,76616.4 %
2025Dec₹668,766₹16,801₹11,507₹5,294₹657,25817.84 %
2026Jan₹657,258₹16,801₹11,598₹5,203₹645,66019.29 %
2026Feb₹645,660₹16,801₹11,690₹5,111₹633,97020.75 %
2026Mar₹633,970₹16,801₹11,783₹5,019₹622,18822.23 %
2026Apr₹622,188₹16,801₹11,876₹4,926₹610,31223.71 %
2026May₹610,312₹16,801₹11,970₹4,832₹598,34225.21 %
2026Jun₹598,342₹16,801₹12,065₹4,737₹586,27726.72 %
2026Jul₹586,277₹16,801₹12,160₹4,641₹574,11728.24 %

How to Use a Car Loan Calculator to Plan Your Vehicle Purchase

What is a Car Loan Calculator?

A car loan calculator is an online tool that helps you estimate your monthly Equated Monthly Installments (EMIs) for a car loan. By entering the loan amount, interest rate, and loan tenure, you can determine your monthly repayment obligations. This tool enables you to plan your finances effectively and choose a car loan that fits your budget.

The EMI Formula Used by a Car Loan Calculator

The formula used to calculate EMI for a car loan is:

  1. EMI = P × r × (1 + r)n (1 + r)n - 1

Understanding the Variables in the Formula

Here’s what each term in the formula represents:

  1. P: Principal loan amount (the total amount borrowed for the car).

  2. r: Monthly interest rate (annual rate divided by 12 and then by 100).

  3. n: Loan tenure in months (years × 12).

Example: Calculating EMI for a Car Loan

Let’s calculate the EMI for a car loan using the following details:

  1. Loan Amount (P): ₹8,00,000

  2. Annual Interest Rate: 9% (r = 9/12/100 = 0.0075)

  3. Loan Tenure: 5 years (n = 5 × 12 = 60 months)

Step-by-Step EMI Calculation

Using the formula:

  1. Substitute the values into the formula: EMI = [800000 × 0.0075 × (1 + 0.0075)^60] / [(1 + 0.0075)^60 - 1].

  2. Calculate (1 + r)^n: (1 + 0.0075)^60 ≈ 1.48465.

  3. Simplify: EMI = [800000 × 0.0075 × 1.48465] / [1.48465 - 1].

  4. Solve: EMI ≈ ₹16,643.98.

Benefits of Using a Car Loan Calculator

A car loan calculator offers several advantages, making it easier to plan your vehicle purchase. Here’s why you should use it:

  1. Quick Calculations: Instantly calculate EMIs without manual effort.

  2. Accurate Results: The calculator ensures precise EMI estimates based on the inputs provided.

  3. Budget Planning: Understand your monthly financial commitments and choose a loan tenure that suits your income.

  4. Comparison Tool: Evaluate different car loan options by adjusting loan amounts, interest rates, or tenures.

  5. Transparency: Get a clear picture of the total repayment amount, including principal and interest.

Frequently Asked Questions.

  1. What is a car loan calculator?

    A car loan calculator is an online tool that helps you calculate your monthly EMIs for a car loan based on the loan amount, interest rate, and loan tenure.

  2. Can I use a car loan calculator for used cars?

    Yes, you can use a car loan calculator for both new and used cars, as long as you know the loan amount, interest rate, and tenure.

  3. How does a car loan calculator help in financial planning?

    It helps you estimate your monthly EMI, compare loan options, and plan your budget effectively before committing to a loan.

  4. What factors affect the EMI for a car loan?

    The EMI is influenced by the loan amount, interest rate, and loan tenure. Higher loan amounts or interest rates lead to higher EMIs, while longer tenures reduce the EMI but increase the total interest paid.

  5. Are car loan calculators free to use?

    Yes, most car loan calculators are free and available online for quick access.