EMI calculator
The same reducing-balance calculation your bank runs. Pick a vehicle or enter any amount, then move the sliders.
Common questions
- How is a car loan EMI calculated in India?
- On a reducing balance, using EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100) and n is the tenure in months. Interest is charged only on the outstanding balance, so the interest portion of each instalment falls every month.
- Does a longer tenure make a car loan cheaper?
- It lowers the monthly instalment but raises the total interest paid. Stretching a loan from 5 to 7 years reduces the EMI noticeably while adding substantially to what you repay overall.
- Is the lowest interest rate always the cheapest loan?
- No. Processing fees materially change the total cost. A loan at 8.6% with a 3% processing fee can cost more than one at 9% with no fee, especially over a short tenure. Compare the APR and the total cost, not the headline rate.