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Car Loan EMI Calculator – Free Auto Loan EMI Calculator 2026
Calculate your car loan EMI instantly for new cars, used cars, and two-wheelers. Compare rates across all major banks, see the full amortization schedule, and find out how much total interest you will pay. Free, no signup required.
🚗 New & Used Cars🏍️ Two-Wheelers🏦 7 Banks Compared📊 Amortization Schedule💡 Smart Buying Tips
💡
Car loan tip: New car loans: use 8.75% – 10% and 3–7 year tenure. Used car loans: use 11% – 14% and 3–5 years. Keep tenure as short as possible — cars depreciate fast.
₹
₹1L₹1Cr
%
1%30%
1 yr30 yrs
Monthly EMI
₹8,678
per month for 240 months
Principal
₹10,00,000
48%
Total Interest
₹10,82,776
52%
Total Payment
₹20,82,776
100%
● Principal 48%● Interest 52%
Amortization Schedule
| Month | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | ₹8,678 | ₹1,595 | ₹7,083 | ₹9,98,405 |
| 2 | ₹8,678 | ₹1,606 | ₹7,072 | ₹9,96,799 |
| 3 | ₹8,678 | ₹1,618 | ₹7,061 | ₹9,95,181 |
| · · · 234 more months · · · | ||||
| 238 | ₹8,678 | ₹8,496 | ₹182 | ₹17,174 |
| 239 | ₹8,678 | ₹8,557 | ₹122 | ₹8,617 |
| 240 | ₹8,678 | ₹8,617 | ₹61 | ₹0 |
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Car Loan EMI — Everything You Need to Know Before Buying
A car loan is one of the most common consumer loans in India — but it is also one of the most misunderstood. Unlike a home loan where the asset (property) appreciates over time, a car depreciates from the moment you drive it out of the showroom. This fundamental difference means car loan decisions need different thinking than home loans.
A new car loses 15–20% of its value in the first year and 10–15% per year after that. If you take a 7-year car loan with a 10% down payment, for the first 2–3 years you will owe more than the car is worth — a situation called being "underwater" or having negative equity. Our car loan EMI calculator helps you model scenarios with different down payments and tenures so you can make an informed decision before visiting the dealership.
Use our percentage calculator to determine the right down payment percentage, or the main EMI calculator to compare car loan against home loan and personal loan scenarios.
Car Loan Interest Rates — All Major Banks (March 2026)
Enter these rates in the calculator above to compare your EMI across lenders. New car rates apply to cars less than 6 months old. Used car rates apply to pre-owned vehicles.
| Bank | 🚗 New Car | 🔧 Used Car | Max Tenure | Processing Fee |
|---|---|---|---|---|
| Kotak Bank | 7.99% | 11.99% | 7 yrs | 1–2% |
| Union Bank | 8.70% | 11.00% | 7 yrs | 0.50% |
| SBI | 8.75% | 12.00% | 7 yrs | 0.35% |
| ICICI Bank | 9.00% | 12.50% | 7 yrs | 1% |
| HDFC Bank | 9.40% | 13.75% | 7 yrs | 0.50% |
| Axis Bank | 9.25% | 14.00% | 7 yrs | 1–1.5% |
| IndusInd Bank | 9.25% | 13.00% | 7 yrs | 1% |
* Indicative rates as of March 2026. Verify with your bank before applying.
Car Loan EMI Table — Common Car Prices at 9% p.a.
Assuming 90% financing (10% down payment). Amounts shown are for the loan amount — not the on-road price.
| On-Road Price | Loan Amount | 3 Yr EMI | 5 Yr EMI | 7 Yr EMI |
|---|---|---|---|---|
| ₹5 Lakh | ₹4.5 Lakh | ₹14,307 | ₹9,338 | ₹7,215 |
| ₹8 Lakh | ₹7.2 Lakh | ₹22,892 | ₹14,940 | ₹11,545 |
| ₹12 Lakh | ₹10.8 Lakh | ₹34,337 | ₹22,410 | ₹17,317 |
| ₹20 Lakh | ₹18 Lakh | ₹57,229 | ₹37,350 | ₹28,862 |
| ₹35 Lakh | ₹31.5 Lakh | ₹1,00,151 | ₹65,363 | ₹50,509 |
New Car Loan vs Used Car Loan — Which Should You Choose?
🚗 New Car Loan
✓Lower interest rate (7.99–10%)
✓Longer tenure available (up to 7 years)
✓Higher LTV — finance up to 90%
✓Manufacturer warranty covers repair costs
✗Higher depreciation in first 3 years
✗Higher on-road price vs market value
🔧 Used Car Loan
✓Significantly lower purchase price
✓Depreciation curve is flatter after 3 years
✓More car for the same EMI budget
✗Higher interest rate (11–16%)
✗Shorter tenure (max 5 years)
✗No manufacturer warranty on older cars
Rule of thumb: If the used car is 1–3 years old with low mileage and full service history, the lower price and slower depreciation often make it the better financial choice — even at a higher interest rate. For brand-new segments or first-time buyers who want predictability, a new car loan makes more sense.
6 Smart Tips to Get the Best Car Loan Deal
💰
Pay 20–30% Down Payment
Never finance the full on-road price. A 20–30% down payment avoids negative equity, reduces your EMI, and signals financial stability to lenders — often getting you a better rate.
⏰
Keep Tenure Under 5 Years
A 7-year car loan means you're still paying for a car that's rapidly losing value. Shorter tenure = more financial flexibility and less total interest. Calculate the difference using this EMI calculator.
🏦
Get Pre-Approved Before Visiting
Apply for pre-approval from your bank before going to the dealership. You'll know your eligible loan amount and rate — giving you negotiating power and preventing the dealer from marking up the interest rate.
📊
Compare On-Road Price, Not Sticker Price
Always calculate EMI on the total on-road price including registration, insurance, and dealer charges — not just the ex-showroom price shown in ads. On-road can be 10–15% higher.
🔄
Avoid "Zero EMI" Schemes
"Zero interest EMI" schemes from dealers hide the cost in a higher product price. The car is marked up to cover the interest waived. Always compare the total cost (price + interest) across options.
🎁
Time Your Purchase for Festive Season
Banks and manufacturers offer the best deals during Diwali, year-end, and financial year-end. Processing fees are waived, interest rates drop, and manufacturers offer cashbacks that effectively reduce the loan amount.
Total Interest Paid — ₹10 Lakh Car Loan at 9% p.a.
This table shows how tenure choice affects both your monthly EMI and the total interest you pay — helping you find the right balance for your budget.
| Tenure | Monthly EMI | Total Interest | Total Payment | Interest % |
|---|---|---|---|---|
| 1 year | ₹87,604 | ₹51,248 | ₹10,51,248 | 5.1% |
| 2 years | ₹45,685 | ₹96,440 | ₹10,96,440 | 9.6% |
| 3 years Recommended | ₹31,800 | ₹1,44,800 | ₹11,44,800 | 14.5% |
| 5 years | ₹20,758 | ₹2,45,480 | ₹12,45,480 | 24.5% |
| 7 years | ₹16,029 | ₹3,46,436 | ₹13,46,436 | 34.6% |
Key insight: Choosing 7 years over 3 years saves ₹15,771/month in EMI but costs ₹2,01,636 more in total interest. That extra interest could buy significant fuel or maintenance for years.
Frequently Asked Questions — Car Loan EMI
What is the current car loan interest rate in 2026?
Car loan interest rates in India range from 7.99% to 14% per annum in 2026. Kotak Bank offers new car loans starting at 7.99%, SBI at 8.75%, HDFC Bank at 9.40%, and ICICI Bank at 9.00%. Used car loans have higher rates — typically 11–16%. Your actual rate depends on your CIBIL score, car model, and down payment percentage.
What is the maximum car loan tenure?
Most banks offer car loan tenure up to 7 years (84 months). Some lenders offer up to 8 years for higher loan amounts. Financial advisors recommend keeping car loan tenure to 5 years maximum — longer tenures mean you are paying interest on a rapidly depreciating asset. A car loses 15–20% of value in the first year alone.
How much car loan can I get?
Banks typically finance 85–90% of the on-road price for new cars and 75–80% for used cars. The maximum loan amount depends on your income and repayment capacity. Banks usually require the EMI to be 40–50% or less of your monthly take-home salary. Most major banks have no upper limit on car loan amount for high-income applicants.
What is the minimum CIBIL score for a car loan?
Most major banks require a minimum CIBIL score of 700–720 for car loans. A score above 750 qualifies for the best rates. Scores between 650–700 may get approved with higher rates or a larger down payment. Below 650, consider NBFCs or apply with a co-applicant with a better credit profile.
Should I make a larger down payment on a car loan?
Yes — a larger down payment reduces principal, interest, and monthly EMI. It also prevents being "underwater" on the loan (owing more than the car is worth) since cars depreciate rapidly. Ideal down payment is 20–30% of the car's on-road price. Never go below 10% as it signals financial instability to lenders.
New car loan vs used car loan — what is the difference?
New car loans have lower interest rates (7.99–12%), longer tenures (up to 7 years), and higher LTV ratios (85–90%). Used car loans have higher rates (11–16%), shorter tenures (3–5 years), and lower LTV ratios (70–80%). The age and condition of the used car significantly impacts approval and rate. Most banks will not finance cars older than 5 years, and the maximum tenure is restricted for older vehicles.
Can I foreclose a car loan early?
Yes, but unlike home loans, car loans on floating rates may still have foreclosure charges depending on the bank. Most banks charge 2–5% of the outstanding principal as foreclosure fee. Check your loan agreement before making a full prepayment. Partial prepayments are usually free or have minimal charges and are recommended to reduce total interest.