Auto Loan Calculator

Drive home your dream with
precision

Calculate your Car Loan EMI, check total interest outgo, and find the perfect tenure for your budget.

Monthly EMI

₹0

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Principal Amount

₹0

Loan Amount

Total Interest

₹0

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🚗 Loan Details

Loan Amount (₹)

₹50K₹1 Cr

Interest Rate (% p.a.)

6%20%

Loan Tenure (Years)

1 yr8 yrs

🍩 Payment Breakdown

Principal —

Interest —

Total Payment

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📈 Amortization Chart

Principal Paid Interest Paid Remaining Balance

📅 Year-by-Year Schedule

Year	Principal Paid	Interest Paid	Total Paid	Balance

⚡ Common Vehicle Loans

🚙

City Hatchback

₹6L · 9.0% · 5 yrs

🚘

Premium SUV

₹15L · 8.8% · 6 yrs

⚡

Electric Vehicle (EV)

₹20L · 8.2% · 5 yrs

🏍️

Sports / Cruiser Bike

₹1.8L · 10.5% · 3 yrs

Calculators

SIP EMI Home Loan Car Loan Personal Loan NPS PPF PF Retirement Salary Eligibility

Auto Finance Tips

EV Tax Benefit

Sec 80EEB gives up to ₹1.5L deduction on EV loan interest.

Downpayment Rule

Aim for at least 20% downpayment to avoid negative equity.

Shorter is Better

Cars depreciate fast. Keep loans under 5 years! ✓

How it works

3 steps to your car loan clarity

From on-road price to monthly commitment — see the full cost of your vehicle in seconds.

Enter vehicle & loan details

Set the loan amount (on-road price minus down payment), the interest rate from your bank or NBFC, and the tenure you prefer.

See your EMI & total cost

The calculator instantly shows your monthly EMI, total interest paid over the loan period, and a year-wise amortization breakdown.

Adjust & find your fit

Change tenure or down payment to find an EMI that fits your salary. Use the common loan presets to benchmark popular vehicle scenarios.

Auto loans explained

How car loans differ from other loans

Cars are depreciating assets — this changes how you should think about financing one compared to a home loan or personal loan.

Factor	Car Loan	Home Loan
Asset type	Depreciating	Appreciating
Max tenure	7–8 years	Up to 30 years
Interest rate	8.5%–14%	8%–10%
Tax benefit	Only for EVs	80C + 24(b)
LTV ratio	Up to 90%	75–85%
Prepayment penalty	May apply	Not on floating
Recommended tenure	≤ 5 years	10–20 years

How a car depreciates over time

Year 0

100%

Year 1

80%

Year 2

70%

Year 3

62%

Year 5

50%

Year 8

35%

⚠️ A car bought for ₹10L can be worth just ₹3.5L after 8 years. If your loan tenure is 8 years, you may still owe more than the car is worth in the first 4–5 years — this is called negative equity. Keep tenure under 5 years to stay ahead of depreciation.

Why this calculator

Why use a Car Loan Calculator?

Dealerships are skilled at making long-tenure loans feel affordable. Knowing your numbers before the showroom visit puts you in control.

Don't fall for the EMI trap

Dealers often extend tenure to 7–8 years to show a lower EMI. Use this calculator to see that a 7-year loan at 9% costs ₹3L+ more in interest than a 5-year loan on the same amount.

Compare bank vs dealer finance

Plug in rates from your bank (where you hold a salary account) and the dealer's DSA partner side by side to see the true interest cost difference over the full tenure.

Optimise your down payment

A 20–30% down payment reduces your principal, lowers interest, and keeps you ahead of depreciation. The slider shows exactly how much interest you save with each extra rupee down.

Works for two-wheelers too

The calculator scales perfectly for bike loans — whether a ₹80K commuter, a ₹1.8L Royal Enfield, or a ₹4L+ superbike. Just enter the loan amount and adjust the range.

Electric vehicles

Special benefits for EV buyers

The Indian government actively encourages electric vehicle adoption through financial incentives that make EV loans cheaper than conventional auto loans in the long run.

₹1.5L

Tax deduction on EV loan interest under Section 80EEB of the Income Tax Act — available to individual borrowers who purchase an EV on loan.

Many public sector banks and some private banks also offer a "Green Car Loan" rate that is 0.20%–0.50% lower than their standard car loan rate. On a ₹20L EV loan over 5 years, this can mean savings of ₹15,000–₹35,000 in interest alone.

Use the interest rate slider in the calculator above to compare your standard rate vs the green rate and see the exact savings.

Section 80EEB — Interest deduction

Claim up to ₹1.5 Lakh per year on EV loan interest paid. Valid for vehicles purchased on or after 1 April 2019 and loans sanctioned before 31 March 2023 (check current budget updates).

Lower interest rates — Green Car Loans

SBI, Bank of Baroda, and several banks offer dedicated green car loan schemes with preferential rates for EV purchases. Always compare these with standard loan quotes.

Lower running cost savings

While not part of EMI, EVs cost ₹1–2/km to run vs ₹7–10/km for petrol vehicles. Factor this saving when comparing the total ownership cost of an EV vs ICE vehicle.

State-level subsidies

States like Maharashtra, Delhi, Gujarat, and Tamil Nadu offer additional purchase subsidies (₹5,000–₹1.5L) and road tax exemptions on EVs over and above central incentives.

Smart tips

Finance your car the smart way

Keep tenure under 5 years

Cars lose 15–20% of value in Year 1 alone. A 7-year loan leaves you in negative equity territory for the first 4–5 years — where you owe more than the car is worth. A 4–5 year tenure keeps you ahead.

20% down payment is the floor

Aim for at least 20% of the on-road price as down payment. This reduces principal, lowers total interest, improves approval odds, and cushions against negative equity in the first two years.

Check CIBIL before applying

A CIBIL score of 750+ gets you the best interest rates. Scores between 700–749 may attract 0.5%–1% higher rates. Check your score free on CIBIL's website before visiting any lender.

Zero-dep insurance is worth it

Banks financing vehicles highly recommend — and sometimes require — zero-depreciation insurance. While it increases insurance premium, it ensures full claim settlement without depreciation cuts on parts.

Recommended max tenure

5 yrs

Financial planners recommend keeping car loan tenure at or below 5 years to avoid being underwater on depreciation and to minimise total interest paid.

Interest rate range in India

8.5–14%

Car loan rates vary widely by lender, vehicle type, CIBIL score, and whether it's new or used. Pre-owned vehicles typically attract 1–3% higher rates than new cars.

Depreciation in Year 1

15–20%

A new car loses 15–20% of its value the moment you drive it out of the showroom. This is why a large enough down payment and shorter tenure are critical for car loans.

Making the right choice

Dealer finance vs bank loan

Where you get your car loan matters as much as the rate. Here's how to think about it.

🏬 Dealer Finance

Through showroom DSA / NBFC partner

Faster processing — same-day approval in many cases

Less documentation — dealer coordinates with lender

Occasional 0% or subvention schemes on select models

Interest rates often 0.5%–2% higher than bank rates

Hidden processing fees, insurance bundling pressure

Dealer incentive may not align with your best interest

Prepayment charges more likely to apply

🏦 Your Bank / Direct Lender

Salary account bank or NBFC applied directly

Lower interest rates — especially with salary account relationship

Pre-approved offers often available — zero/low processing fee

Transparent terms — easier to compare and negotiate

No pressure to bundle insurance or add-ons

Slightly slower — may take 2–3 business days for approval

Frequently asked questions

Common questions about car loan planning and auto finance in India.

Should I take a loan from the dealer or my bank?

Banks where you hold a salary account often provide pre-approved offers with lower interest rates and zero processing fees. Dealerships offer convenience but rates are typically 0.5%–2% higher. Always get a quote from your bank first, then use it to negotiate at the showroom.

What is negative equity and how do I avoid it?

Negative equity is when you owe more on your car loan than the car is currently worth. Since cars depreciate 20% in Year 1 and about 10–15% each subsequent year, long tenure loans (7–8 years) often result in negative equity for the first 4–5 years. Avoid it by putting down at least 20% and keeping tenure at or below 5 years.

What CIBIL score is needed for the best car loan rate?

A CIBIL score of 750 and above is considered excellent and will qualify you for the lowest available rates from prime lenders. Scores between 700–749 may attract 0.5%–1% higher rates. Below 650, you may face rejection from banks and be forced to rely on NBFCs with significantly higher rates.

Can I get a loan for a used/second-hand car?

Yes — most banks and NBFCs offer used car loans, but at rates 1%–3% higher than new car loans. The LTV (loan-to-value) ratio is also lower — typically 70–80% of the vehicle valuation rather than 85–90% for new cars. Vehicle age at the end of tenure usually cannot exceed 10–15 years depending on the lender.

Are there prepayment charges on car loans?

Unlike home loans (where floating rate prepayment is penalty-free), car loans — which are typically fixed rate — may carry prepayment charges of 1%–5% of the outstanding amount. This varies by lender and loan agreement. Always check the foreclosure terms before signing. Some lenders waive these after 12 months of repayment.

Does zero-depreciation insurance affect my loan terms?

Insurance doesn't directly change your EMI, but banks financing vehicles highly recommend (and sometimes mandate) comprehensive zero-depreciation insurance to protect their collateral. While it increases your annual insurance premium by 20–30%, it ensures full claim settlement without deductions for part depreciation — which is worth it on financed vehicles.

Drive smart, finance smarter

Use the calculator above to find the right EMI, compare tenure options, and understand the true cost of your car loan before you sign anything at the showroom.

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