Calculate your car loan monthly EMI, total cost of ownership, and complete repayment schedule.
Monthly EMI
$16,801
Total Interest Payable
$208,089
Total Amount Payable
$1,008,089
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| Year | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $201,612 | $131,230 | $70,382 | $668,770 |
| Year 2 | $201,612 | $144,253 | $57,359 | $524,517 |
| Year 3 | $201,612 | $158,569 | $43,043 | $365,948 |
| Year 4 | $201,612 | $174,308 | $27,304 | $191,640 |
| Year 5 | $201,644 | $191,640 | $10,004 | $0 |
A car loan is a secured loan where the vehicle serves as collateral. It finances the purchase of a new or used car, SUV, or other four-wheeler. Interest rates range from 7% to 14% p.a. for new cars and slightly higher for pre-owned vehicles. Most lenders finance up to 90% of the on-road price for new cars and up to 80% for used cars. Tenures range from 12 to 84 months. Your CIBIL score, income, employment type, and the vehicle model affect eligibility and interest rate.
Where P = Principal, r = Monthly Interest Rate, n = Number of Months
On-road price vs ex-showroom financing?
Banks finance the on-road price which includes ex-showroom + road tax + registration + insurance + accessories. Always calculate your EMI on the total on-road amount. The difference can be 15–25% above the ex-showroom price in most cities.
New car vs used car loan rates?
New car loans attract rates of 7–11% p.a. Used car loans are priced higher (10–16%) due to lower collateral value and higher depreciation risk. The age of the vehicle matters — most banks don't finance cars older than 10 years.
Should I make a larger down payment?
Yes. A higher down payment (30–40%) significantly reduces your loan amount, EMI, and total interest paid over the tenure. It also reduces your debt-to-income ratio, improving future credit eligibility.
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