Car Loan EMI Calculator

Buying a car? Calculate your monthly car loan EMI, total interest, and full repayment schedule. Pre-filled with typical auto loan values — adjust the amount, rate, and tenure to match your lender's offer.

$1,000$10,000,000
%
136
yr
130

Monthly EMI

$701

Total Interest

$7,080

16.8% of total

Total Payment

$42,080

Principal + Interest

Principal vs Interest

16.8%interest

Principal

$35,000 (83.2%)

Interest

$7,080 (16.8%)

Outstanding Balance by Year

Yr 1
$29,006
Yr 2
$22,546
Yr 3
$15,585
Yr 4
$8,084
Yr 5
$0

Amortization Schedule

MonthEMIPrincipalInterestBalance
1$701$483$219$34,517
2$701$486$216$34,032
3$701$489$213$33,543
4$701$492$210$33,052
5$701$495$207$32,557
6$701$498$203$32,059
7$701$501$200$31,558
8$701$504$197$31,054
9$701$507$194$30,547
10$701$510$191$30,036
11$701$514$188$29,523
12$701$517$185$29,006

What is EMI?

An Equated Monthly Instalment (EMI) is a fixed amount you pay to your lender every month until the loan is fully repaid. Each payment covers both the interest accrued for the month and a portion of the principal. As the loan balance reduces over time (under the reducing balance method), the interest component decreases while the principal component increases — keeping the monthly EMI constant throughout.

How to use Car Loan EMI Calculator

  1. 1
    Enter the vehicle loan amount

    Type or slide to set your auto loan amount. The tool defaults to $35,000 — typical for a mid-range car. Adjust based on the vehicle price minus your down payment.

  2. 2
    Enter the interest rate

    Auto loan rates typically range from 5–15% depending on your credit score, lender, and whether the car is new or used. Enter the APR quoted by your dealer or bank.

  3. 3
    Set the loan tenure

    Car loans commonly run for 36–72 months (3–6 years). Shorter terms mean higher monthly payments but significantly less interest paid overall.

  4. 4
    Check the amortization schedule

    View the month-by-month breakdown and download it as CSV — useful for tracking your repayment progress and understanding how each payment splits between principal and interest.

  5. 5
    Compare two loan offers

    Enable Compare mode to put two dealer or bank financing offers side by side and instantly see which costs less in total interest.

Frequently Asked Questions

What is a good interest rate for a car loan?

As of 2025, auto loan rates in the US range from approximately 5–8% for new cars and 7–15% for used cars, depending on your credit score. Borrowers with excellent credit (720+) typically qualify for the lowest rates. Dealer financing often carries higher rates than bank or credit union loans — it's worth getting pre-approved before visiting a dealership.

What is the best loan tenure for a car loan?

Most financial advisors recommend keeping auto loan terms to 60 months (5 years) or less. While 72 or 84-month loans lower the monthly payment, they significantly increase total interest and can leave you 'underwater' — owing more than the car is worth — as vehicles depreciate quickly. A 48 or 60-month term balances affordability with total cost.

How much down payment is needed for a car loan?

A 20% down payment is the general recommendation for new cars, and 10% for used cars. A larger down payment reduces your loan amount, lowers the monthly payment, and reduces total interest. It also helps avoid negative equity (owing more than the car is worth) as the vehicle depreciates.

Can I prepay a car loan without penalty?

Most auto loans in the US allow prepayment without penalty — check your loan agreement to confirm. Prepaying reduces the outstanding principal, which lowers the interest that accrues on subsequent months. Use the Prepayment Simulator on this page to see exactly how much interest and how many months you save with a one-time extra payment.

Does this car loan calculator include insurance or taxes?

No. This calculator computes the pure loan payment based on the loan amount, interest rate, and tenure. Vehicle insurance, sales tax, registration fees, and any dealer add-ons are separate costs not included in the loan payment shown here. Factor these in when budgeting your total cost of ownership.

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