Car Loan EMI Calculator

Monthly EMI
₹ 19,566

Principal Amount
 ₹ 1,000,000

Total Interest
₹ 173,960

Total Amount
 ₹ 1,173,960

Loan Amount

₹ 100000
₹ 1 Cr

Rate of Interest(p.a)

1 %
30 %

Loan Tenure

1 Yrs
30 Yrs

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Car Loan EMI Calculator

Buying a car is an exciting experience. However, along with the excitement often comes anxiety about being able to afford the monthly payments or EMIs. This is where a car loan EMI calculator comes in handy. A car loan EMI calculator is an online tool that allows you to calculate the approximate EMI you will have to pay monthly for your car loan. Knowing the estimated EMI amount in advance helps you assess your repayment capacity better and pick a car loan that fits your budget.

Let's look at what a car loan EMI is, how a car loan EMI calculator works, and the key advantages of using one.

What is Car Loan EMI?

EMI or Equated Monthly Installment refers to the fixed payment amount you pay every month to repay your car loan within the agreed tenure. Car loan EMIs are calculated by taking into account the following factors:

  • Loan amount (price of the car after downpayment)
  • Interest rate
  • Loan tenure
  • Processing fees

The EMI comprises of two components - principal amount and interest amount.

In the initial months, the interest component is higher, and the principal component is lower. As you continue paying the EMIs over the months, the interest component decreases, and the main element increases. This ensures that by the end of the loan tenure, the entire loan amount is repaid along with the interest accrued.

What is a Car Loan EMI Calculator?

A car loan EMI calculator is an online tool which allows you to calculate the EMI amount you will have to pay for a car loan based on the loan details you input.

Here are the key features and workings of a car loan EMI calculator:

  • Inputs required: The EMI calculator will ask you to enter information like loan amount, interest rate, loan tenure, and processing fee. Some calculators may ask for details like repayment frequency (monthly/annually).
  • Auto EMI calculation: Based on the inputs provided, the calculator will automatically calculate and display the EMI amount you need to pay every month.
  • Adjustable inputs: You can change the loan details like amount, interest rate, tenure, etc., to see the impact on EMI. This allows you to play around with different combinations to arrive at an EMI you are comfortable with.
  • Amortization schedule: Most EMI calculators also provide the loan amortization schedule that shows the breakup of principal & interest components of EMI across the tenure.
  • Download/Email options: The amortization schedule and EMI amount can be downloaded or emailed for future reference.

How to use IIFL Car Loan EMI Calculator?

Many lenders provide free online car loan EMI calculators on their websites to help potential borrowers get easy access to this tool.

Let us see how to use the car loan EMI calculator provided by IIFL:

  • Visit calculator page- Go to the IIFL [Car Loan EMI Calculator page]
  • Enter loan amount - Select the car price or enter the loan amount you need.
  • Select tenure - Choose a convenient repayment tenure from 12 months to 84 months.
  • Enter interest rate - Enter the interest rate offered by IIFL or slide to select rate.
  • Click Calculate - The calculator will show the loan details summary and monthly EMI amount.
  • Toggle parameters - Change loan amount, tenure, and interest rate to see the impact on EMI.
  • View amortization - Click the amortization schedule toggle to see the month-wise breakup.
  • Download/Email - Save or email the detailed EMI schedule.

The intuitive interface and customizable inputs make it easy to arrive at an optimal EMI suited to repayment capacity.

How Does Car Loan EMI Calculators Work?

Car loan EMI calculators are powered by a mathematical formula called the [PMT (Principal, Interest, Term) formula]

Here is an overview of how the PMT formula works to arrive at the EMI amount:

Step 1: The calculator takes the loan amount, tenure, and interest rate as inputs.

Step 2: The interest rate is divided by 12 to arrive at the monthly interest rate as EMIs are paid monthly.

Step 3: The loan amount, monthly interest rate, and loan tenure in months are fed into the PMT formula below:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]


  • P is the loan amount
  • R is the monthly interest rate
  • N is the loan tenure in months

Step 4: The formula calculates the fixed EMI amount you need to pay every month for the specified tenure to repay the loan.

This mathematical logic lets the calculator quickly compute the EMI once you input the basic loan details.

Car Loan Amortization Schedule

The EMI calculator also provides an amortization schedule with a month-on-month breakup of the principal and interest components within the EMI amount.

Here is an example car loan amortization table:

MonthOpening BalanceInterestPrincipalEMIClosing Balance

The amortization schedule shows how, with every EMI, the outstanding loan amount keeps reducing, and more is repaid towards the principal.

The schedule clarifies the decreasing interest outgo and helps assess the actual cost of borrowing.

Advantages of using Car Loan EMI Calculator

Using a car loan EMI calculator comes with many benefits:

  • Estimate EMIs in Advance: A car loan EMI calculator allows you to predict your monthly installments before applying for a loan. This upfront clarity helps you evaluate if the loan fits your budget, preventing financial surprises later on.
  • Choose Optimal Loan Terms: You can fine-tune your loan by adjusting the principal amount, tenure, and interest rate in the calculator. This flexibility helps you find a comfortable EMI that aligns with your financial capabilities.
  • Compare EMIs Across Lenders: EMI calculators enable you to calculate EMI amounts from different lenders or loan products. This empowers you to shop around and identify the most affordable loan option, saving you money.
  • Assess Interest Costs: The calculator provides an amortization schedule, giving you a clear picture of how much interest you'll pay over the loan's duration. This insight helps you make informed decisions about your loan.
  • Plan Finances Better: Knowing your EMI amount allows you to budget effectively. You can plan your expenses to ensure timely EMI repayments, avoiding any financial strain.
  • Faster Loan Processing: Having a predetermined budget EMI amount streamlines the loan selection and approval process. It makes you a well-prepared applicant and expedites the loan approval.
  • Available 24x7: Online EMI calculators are accessible round the clock from anywhere. This convenience means you can perform EMI calculations at your convenience, without needing to visit a physical branch or wait for assistance.


A car loan EMI calculator is your best friend when buying a new set of wheels. This online calculator gives you complete clarity on the amount you need to repay each month before you even apply for the loan. Use it wisely to pick a car loan that fits your budget and kickstart your new journey in your dream car, stress-free!


Q1. Is there any limit on the loan amount or tenure that can be used in the EMI calculator?

Most EMI calculators allow you to input any loan amount and tenure. However, final loan eligibility will be as per lender norms. 

Q2. Does the EMI amount shown include processing fees?

The EMI amount excludes processing fees or other charges. These are collected separately by lenders.

Q3. Can I get a loan if the EMI exceeds my current affordability?

Lenders will check repayment capacity before approving a loan. Opt for a lower loan amount or longer tenure to arrive at an affordable EMI.

Q4. What is the impact of interest rate changes on my EMI?

A higher interest rate increases your EMI amount. A lower interest rate decreases the EMI amount.

Q5. How frequently is the EMI payable - daily, weekly, or monthly?

For car loans, the EMI payment frequency is fixed as monthly. The EMI amount is paid every month on a specified date.

Q6. Can I foreclose the loan once I start repayment?

Yes, most lenders allow you to foreclose the loan by paying the outstanding principal. However, check with the lender on any foreclosure charges applicable.