Car Loan Calculator
Work out the monthly payment (EMI) on a car loan and what it costs overall. Enter the car price, down payment, interest rate, and tenure, and this calculator returns the monthly EMI, financed amount, total interest, and total cost.
Formula
Financed Amount = Car Price − Down Payment
EMI = Financed × r × (1+r)^n / ((1+r)^n − 1)
Total Cost = Down Payment + EMI × n
- The financed amount is the car price minus your down payment — only this is borrowed.
- EMI uses the standard amortization formula with a monthly rate r = annual rate ÷ 12 ÷ 100 over n months.
- Total interest is the sum of all EMIs minus the financed amount.
- Total cost adds your down payment to everything you repay over the term.
- A larger down payment or shorter tenure lowers the interest you pay.
- Enter amounts in your local currency and the rate as a plain percentage (e.g. 7 for 7%).
$25,000 car, $5,000 down, 7% / 5 yr
Inputs
- Car Price: 25000
- Down Payment: 5000
- Annual Interest Rate: 7 %
- Loan Tenure: 5 years
Financed = $25,000 − $5,000 = $20,000 over 60 months at 7%. EMI ≈ $396, total interest ≈ $3,761, and total cost ≈ $28,761.
Frequently asked questions
What is an EMI?
EMI (equated monthly installment) is the fixed amount you pay each month. It blends interest and principal so the loan is fully repaid by the end of the term.
Does a bigger down payment help?
Yes. It reduces the financed amount, which lowers both the monthly EMI and the total interest you pay over the loan.
How does tenure affect cost?
A longer tenure lowers the monthly EMI but increases total interest. A shorter tenure costs more per month but less overall.
What is the premium over sticker price?
It's how much more than the car's price you end up paying once interest is included — a quick gauge of the loan's true cost.