Car Loan EMI Calculator India โ FY 2025-26
Calculate your car loan EMI and total cost of ownership with India's most detailed auto loan calculator. Compare new vs used car financing, see exact interest payable at SBI/HDFC/ICICI rates, and estimate the true 5-year cost including insurance, fuel, maintenance, and depreciation. Updated for March 2026.
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How to Use This Calculator
Car Loan EMI tab
Enter the on-road car price, down payment percentage, interest rate, and loan tenure. The calculator instantly shows your monthly EMI, total interest payable, and total cost of the car. Toggle "More options" to include the bank's processing fee and GST in your calculation.
New vs Used Car tab
Enter pricing and loan details for both a new car and a used car side by side. The calculator compares total cost, EMI, and interest for each option. New cars get lower rates (8.50-9.50%) but cost more upfront. Used cars have higher rates (11-14%) but lower principal. See which option saves you more overall.
Total Ownership Cost tab
Goes beyond EMI to calculate the true cost of owning a car over 3-10 years. Includes loan interest, insurance, fuel, maintenance, road tax, and depreciation. Many buyers focus only on EMI and are surprised that running costs can exceed the car price itself over 5 years.
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The Formula
Car loan EMI is calculated using the standard reducing balance (amortisation) formula used by all Indian banks and NBFCs:
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Where:
P = Principal loan amount (car price minus down payment)
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months (tenure in years × 12)
Total Interest Payable:
Total Interest = (EMI × n) − P
Processing Fee:
Fee = Loan Amount × Processing Rate (0.25-0.50%)
Total Fee = Fee + 18% GST on fee
Depreciation (approximate):
Year 1: ~20% of car value
Year 3: ~40% cumulative
Year 5: ~50% cumulative
Year 7+: ~60-70% cumulative
The reducing balance method means you pay interest only on the outstanding principal, not the original loan amount. As you pay EMIs, the interest component decreases and the principal component increases each month. This is the same formula used by SBI, HDFC Bank, ICICI Bank, and all other RBI-regulated lenders.
Example
Rahul — Delhi IT professional buying a โน10,00,000 car with 20% down payment
Rahul earns โน80,000/month and wants to buy a mid-segment sedan worth โน10 lakh (on-road). He has โน2 lakh saved for the down payment and gets an SBI car loan at 8.75% for 5 years.
Step 1: Loan details
Step 2: EMI calculation
Step 3: Total cost with processing fee
Step 4: Total ownership cost (5 years)
Rahul's โน10 lakh car actually costs him โน17.66 lakh over 5 years when you include loan interest, insurance, fuel, maintenance, and road tax. The car's resale value after 5 years would be approximately โน5 lakh, making the net cost of ownership around โน12.66 lakh. His EMI of โน16,441 is about 20% of his monthly income — well within the recommended 15-20% limit.