Car Loan Calculator India

Calculate car loan EMI, affordability, and total ownership cost

Car Loan Calculator India

Calculate car loan EMI, affordability, and total cost of ownership. Compare rates, analyze depreciation, and plan your car purchase.

Car Loan Details

Ex-showroom price of the car

25% of car price

%

Current car loan rates: 8.5% - 15%

5 years (max 7 years)

Additional Costs

Comprehensive insurance premium

RTO charges, road tax, etc.

%

Bank processing fee

Car Loan Results

Monthly EMI

₹12,601

For 5 years

Loan Amount

₹6,00,000

LTV: 75%

Total Interest

₹1,56,067

Interest over loan tenure

On-road Price

₹8,55,000

Car + Insurance + Road Tax

Affordability Analysis

Car is Affordable
FOIR: 23.47% (Max: 50%)
Monthly income₹75,000
Income after all EMIs₹57,399
Max affordable car price₹17,47,482
Effective interest rate5.2%

Total Cost Breakdown

Ex-showroom price₹8,00,000
Interest paid+₹1,56,067
Processing fee+₹3,000
Insurance + Road tax+₹55,000
Total cost of car₹10,14,067

Frequently Asked Questions

How is car loan EMI calculated in India?

Car loan EMI is calculated using the formula: EMI = [P × R × (1+R)^N] / [(1+R)^N-1], where P is loan amount (car price - down payment), R is monthly interest rate, and N is tenure in months. The car serves as collateral for the loan.

What is the difference between new car and used car loan rates?

New car loans offer lower interest rates (8.5-12%), higher LTV (up to 90%), and longer tenure (7 years). Used car loans have higher rates (12-16%), lower LTV (80-85%), shorter tenure (5 years), and age restrictions (typically 5-7 years old).

What is LTV ratio in car loans and why does it matter?

LTV (Loan-to-Value) ratio is the percentage of car price financed by the loan. New cars can have up to 90% LTV while used cars typically get 80-85%. Higher LTV means lower down payment but may attract slightly higher interest rates.

What additional costs should I consider when buying a car?

Beyond the car price and EMI, consider: comprehensive insurance (3-6% of car value), road tax and registration charges, processing fees (0.5-2%), extended warranty, accessories, and annual maintenance costs. These can add 15-20% to the ex-showroom price.

How does car depreciation affect my investment?

Cars depreciate rapidly - about 20% in the first year and 15% annually thereafter. This affects resale value and equity. Understanding depreciation helps in deciding loan tenure, down payment amount, and when to sell or upgrade your car.