Car Loan Calculator
Calculate your car loan EMI, total interest, and total repayment. Plan your vehicle purchase with accurate cost estimates for new and used cars.
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Years
* All calculations are approximate.
Important — Read Before You Decide
- Cars depreciate 15–20% in the first year itself — your asset loses value while you pay interest on it
- Comprehensive motor insurance is mandatory for the loan tenure and adds ₹15,000–₹50,000 annually to ownership cost
- Used car loans carry 2–4% higher interest rates than new car loans and shorter maximum tenures
- Dealers often inflate the ex-showroom price in loan applications — always verify the on-road price independently
- Banks finance only 80–90% of the on-road price — you need 10–20% as down payment plus registration and insurance
- Car loan interest is NOT tax deductible for personal use — only business vehicles qualify under Section 43(1)
- Extended warranty and accessories sold at the dealership are often overpriced — compare market rates before adding them to your loan
What Happens If You Ignore These?
- A longer tenure reduces EMI but significantly increases total interest — a 7-year loan costs 25–40% more than a 3-year loan in interest
- Defaulting on car loan EMIs leads to vehicle repossession without court order under the hypothecation agreement
- The car's resale value drops faster than your outstanding loan balance, leaving you in negative equity for the first 2–3 years
- Adding accessories, insurance, and extended warranty to the loan amount inflates your total cost by lakhs
- Not accounting for fuel, maintenance, and insurance means the true monthly cost of owning a car is 1.5–2x the EMI
Smart Tips
- Pay the maximum down payment you can afford — even 30–40% down saves significantly on interest
- Choose a 3–5 year tenure instead of the maximum 7 years to minimize total interest paid
- Get loan pre-approval from your bank before visiting the dealership — dealer-arranged financing often has higher rates
- Compare the total cost of ownership (EMI + insurance + fuel + maintenance) before deciding your budget
- Consider certified pre-owned cars — they cost 30–50% less with manufacturer warranty and lower insurance premiums
- Negotiate the on-road price separately from the financing — dealers bundle markups into loan-linked deals
Frequently Asked Questions
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