Auto Loan Calculator
The Auto Loan Calculator shows your monthly car loan payment, total interest, and total cost. It helps you budget for one of the most common consumer loans.
Auto Loan Calculator
What the result means
Your monthly payment is calculated on the loan amount (car price minus down payment). Car loans have shorter terms than mortgages, so the total interest is lower, but the monthly payment is higher for the same loan amount.
How to use this calculator
- 1Enter the car price in rupees.
- 2Enter your down payment amount.
- 3Enter the annual interest rate.
- 4Enter the loan term in years (typically 3-7 years).
- 5Press Calculate to see your monthly payment, loan amount, total interest, and total cost.
The formula
The calculation uses a standard, verifiable formula. Here it is in its simplest form.
What each variable means
| Symbol | Name | Description |
|---|---|---|
| P | Loan amount | Car price minus your down payment. |
| r | Monthly rate | The annual interest rate divided by 12 and 100. |
| n | Months | The loan term in months. |
Step-by-step example
Example: ₹8,00,000 car with ₹1,00,000 down, 9% for 5 years
- 1Loan amount = 8,00,000 − 1,00,000 = ₹7,00,000
- 2Monthly rate = 9% ÷ 12 = 0.75% = 0.0075
- 3Months = 5 × 12 = 60
- 4EMI ≈ ₹14,531
- 5Total payment = 14,531 × 60 = ₹8,71,860
- 6Total interest = 8,71,860 − 7,00,000 = ₹1,71,860
Result
≈ ₹14,531/month, ₹1.7 lakh interest
What changes the result
- Car loan terms are shorter (3-7 years), reducing total interest.
- A larger down payment reduces the loan amount and monthly payment.
- Car loan rates are often higher than home loans.
- Cars depreciate quickly, so the loan can exceed the car's value early on.
Edge cases to be aware of
Unusual situations handled correctly
- If the down payment equals the car price, the loan amount is zero.
- Very short terms (1-2 years) have high payments but low interest.
- Some lenders offer balloon payments at the end of the term.
Common mistakes
Avoid these errors
- Using the annual rate directly instead of dividing by 12.
- Forgetting to include insurance and registration costs in your budget.
- Choosing a term too long for a depreciating asset.
Assumptions
- The interest rate is fixed for the loan term.
- Payments are made monthly.
- No prepayments or restructuring occur.
Limitations
- Does not include insurance, registration, or maintenance costs.
- This is an estimate, not a loan quote.
- Actual rates vary by lender and credit profile.
Frequently asked questions
How much down payment should I make on a car?+
What is a good car loan term?+
Can I prepay my car loan?+
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