Car Loan EMI Calculator

Calculate your car loan EMIs with our Car Loan EMI calculator and plan your budget accordingly.

Your Loan Amount




Rate of Interest (P.A)




Loan Duration







Principal Amount


Total Interest


Total Amount


Principal Amount


These days you no longer have to save for years to buy the car of your dreams. Because many banks offer car loans now, and availing one is very easy. But if you are thinking about taking out one such loan, you must know how to calculate your Equated Monthly Installment or EMI. This is where our car loan EMI calculator comes to your rescue.

What is a Car loan EMI?

A car loan EMI is the fixed amount the borrower of a car loan has to pay at a set date each month for the agreed-upon tenure. The EMI amount consists of the principal repayment as well as interest. You can ascertain the EMI amount for car loans by using the car loan EMI calculator above.

Car loan EMI calculator explained

EMI calculations are not easy. They often require complicated calculations and an advanced understanding of financial concepts. That’s why car loan EMI calculators are useful.

Our calculator is designed to facilitate ease of use. So by simply keying in the numbers, you will be able to see the amount you need to set aside every month for repayment of the loan. All you need to use the calculator is access to the internet.

How do car loan EMI calculators work?

The Lemonn car loan EMI calculator is very easy to understand and use. It is an online tool where you just have to enter the loan amount, number of years, and the interest rate. Using it will give you a clear idea about what you will have to pay every month. And it does the math in no time.

Factors affecting car loan EMIs

Your car loan EMI amount is a combination of the principal amount, interest rate, and tenure. So there are other factors that impact your EMI. These factors include:


  • Your credit score: This score impacts your eligibility for a loan and the interest rate at which you will get a loan. You can bargain with the lender for lower interest rates if you have a good credit score. People with poor credit scores are usually charged a higher interest rate.


  • Income: If you have a lower debt-to-income ratio, you will get a cheaper loan. Because your low debt vs. high-income scenario suggests that you can repay the loan on time. This will also increase your chances of getting the loan at a lower interest rate


  • Down payment amount: The more you pay upfront, the less your lender will have to lend. A high down payment is assumed to vouch for your financial stability and reduce the risk for the lender. The lender will, therefore, be ready to extend the loan at a lower interest rate—thus bringing down your EMI.


  • Tenure of the loan: Short-tenure loans tend to come with a higher EMI but have lower interest rates. On the other hand, long-term loans will have lower EMI but the interest amount will be higher.


  • Car model and age: When you avail a car loan, your car will serve as collateral for the tenure of the loan. Therefore, the age and the model will play a role in determining the interest rate and thus the EMI. 


It is important to know that a lower EMI number doesn’t always translate to better loan terms for the borrower. You should calculate the outgoing interest amount before accepting the loan terms.

Formula to calculate car loan EMI

The process of calculating a car loan EMI is a little complicated. It’s always simpler to use a calculator like the one above. But if you are curious about the math involved, here is how it works. The formula to use is:


E= P. R. (1+R)^n/[(1+R)^n -1]



E = EMI per month

P = Principal amount 

R = Rate of interest per month

n = Tenure in months


Let’s try to understand this formula with an example. Suppose you plan to buy a car and need ₹10,00,000. Assuming your bank is offering this sum at 10% interest for a tenure of 5 years, your EMI amount will be ₹21,247. Your tenure will be 60 months and your rate of interest per month will be 0.83%.


You will have to pay a total of ₹12,74,822 to the bank at the end of 5 years. Of this, ₹10,00,000 would be paid toward the principal, and ₹2,74,822 will be your interest payment. 

Benefits of using the car loan EMI calculator

There are many benefits of using the Lemonn car loan EMI calculator. Here we highlight the main ones.

  • Accurate results

The car loan EMI math requires complicated calculations. The chances of making an error are higher if you calculate the EMI amount using a pen and paper. An online EMI calculator, on the other hand, will make the EMI calculation easy while reducing errors. 

  • Flexibility to customize variables

Factoring in all the variables while calculating your EMIs has never been easier. We recognize that different lenders offer different interest rates and loan tenures. This is why this calculator makes sure you can customize the variables to suit your needs.

  • Easy comparison of loan offers

It is likely that you will approach multiple lenders to get the best loan offer before buying a car. Comparing these offers without a car loan EMI calculator will be a herculean task. With the calculator, you can compare as many offers as you want in a matter of minutes.

  • Financial control and decision-making

Since this calculator is pretty exact, it leaves you better placed to make sound financial decisions. It equips you to figure out whether waiting for a few months will help. And if the EMI doesn’t work for you, searching for another lender will seem less daunting.

  • Clear understanding of loan repayment

Loans are best taken with absolute clarity about the repayment scenario. And using a calculator can give you that clarity because of all the benefits associated with it. Comparing options, for instance, and figuring out what tenure would work for you is easiest done with a calculator.


If you are planning to buy a car, the first order of business should be to calculate the EMI for various rates and periods. This will ensure you are equipped to pick the best deal possible and give you the upper hand.


1.How does the term (duration) affect my interest amount?

The longer the duration of the loan, the more you will have to pay toward interest. Therefore, duration and interest are directly proportional to each other.

2.What are the current interest rates for car loans?

The interest rates for car loans tend to vary as they are impacted by macroeconomic factors. It is best to inquire about the interest from multiple lenders at the time of your purchase.

3.Which one is better, a car loan EMI calculator or an Excel calculator?

A car loan EMI calculator is accurate and is easy to use. That makes it a better alternative to an Excel calculator, in our opinion, but you should give both a shot and decide for yourself.

4.Can the car loan EMI calculated by the bank be different from that calculated by the EMI calculator?

The car loan EMI calculator is accurate and will give you the same EMI as that offered by the bank if you key in the correct values. In case the EMI figure is different, you can check the input values and talk to the bank to understand the reason for the difference.

5.Is the car loan calculator the same as home, personal loan calculator?

Loan calculators are based on three factors: principal amount, interest rate, and tenure. Therefore, a car loan calculator can also be used to calculate EMI for home, and well as personal loan. However, we do have separate pages for each of these categories.

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