Car Loan EMI Calculator
Calculate the monthly EMI on a car loan and the total interest you'll pay. Enter the loan amount, annual interest rate, and tenure, and this calculator uses the standard amortization formula to give your monthly installment and overall cost.
Formula
r = Annual Rate ÷ 12 ÷ 100; EMI = P × r × (1+r)^n / ((1+r)^n − 1)
- EMI is the fixed monthly installment that fully repays the loan over the term.
- P is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100), and n the number of months.
- Each EMI covers interest on the outstanding balance plus a slice of principal.
- Total interest = (EMI × number of months) − loan amount.
- A higher rate or longer tenure increases the total interest you pay.
- Enter the amount in your local currency and the rate as a plain percentage (e.g. 8 for 8%).
$20,000 loan, 8% / 5 yr
Inputs
- Loan Amount: 20000
- Annual Interest Rate: 8 %
- Loan Tenure: 5 years
Monthly rate = 8 ÷ 1200 = 0.006667 over 60 months. EMI ≈ $406, total repayment ≈ $24,332, and total interest ≈ $4,332.
Frequently asked questions
What is a car loan EMI?
EMI (equated monthly installment) is the fixed amount you pay each month. It combines interest and principal so the loan is cleared by the end of the tenure.
How is EMI calculated?
With the amortization formula EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan, r the monthly rate, and n the months. It keeps payments level throughout.
Does a longer tenure reduce my EMI?
Yes, but it raises total interest. Spreading the loan over more months lowers each payment while increasing the overall cost.
How can I lower the total interest?
Borrow less, choose a shorter tenure, secure a lower rate, or make prepayments. Each reduces the interest accrued over the loan.