About this tool
Car loans usually run for 3 to 7 years. A bigger down payment and a shorter tenure keep the interest down; this calculator shows the trade-off so you can pick an EMI that fits your budget.
Choosing a car loan you will not regret
A car loses value from the day you drive it home, which makes the cost of borrowing for one worth extra thought. Before choosing a loan, decide how long you expect to keep the car. If you usually change cars every five years, a seven-year loan means you could still owe money on a vehicle you no longer want, and selling it becomes awkward.
Compare a few combinations of down payment and tenure. On an ₹8 lakh loan at 10%, five years gives an EMI of about ₹17,000 with roughly ₹2.2 lakh of interest. Seven years brings the EMI down to about ₹13,300, but interest rises to around ₹3.16 lakh. A larger down payment helps twice over: you borrow less, and you are less likely to owe more than the car is worth if you need to sell early.
Use the on-road price as your starting point, not the ex-showroom figure, because insurance, registration and accessories are part of what you actually pay. Some dealers offer a low headline rate but add processing charges or require expensive bundled insurance, so ask for the full cost in writing and compare it here against your bank's offer. Fuel, servicing, parking and the yearly insurance renewal also come out of the same monthly budget, so leave room for them when you decide what EMI is affordable. A car that strains your finances every month is rarely worth the extra comfort it brings. Finally, ask whether the loan has a foreclosure charge, since many buyers end up closing car loans early when they sell or upgrade.
How to use it
- Enter your numbers in the boxes, or drag the sliders.
- Read the result on the right. It updates as you type.
- Open the year-by-year table, if shown, to see how the numbers change over time.
- Use 'Copy link with these values' to save the calculation or send it to someone.
Questions
What is a sensible car loan tenure?
Many planners suggest keeping it to 5 years or less, because cars lose value quickly and a long loan can leave you owing more than the car is worth.
Should I calculate on the ex-showroom or on-road price?
Use the on-road price, which includes registration, insurance and road tax, because that is what you actually pay.
Last reviewed 16 October 2026. Results are estimates for planning. Check important figures with your bank, employer or a qualified adviser.