Car loans are secured against the vehicle and usually run 1–7 years. The calculator converts the annual rate to a monthly rate and applies the reducing-balance EMI formula over the number of months.

Total amount payable is EMI × months; total interest is that figure minus the loan amount. A larger down payment reduces the loan amount and therefore the EMI and total interest.

Given: Loan ₹8,00,000, rate 9.5% p.a., tenure 5 years (60 months)

Monthly rate r = 9.5 / 12 / 100 = 0.007917

(1+r)⁶⁰ = 1.6050

EMI = 8,00,000 × 0.007917 × 1.6050 / (1.6050 − 1) ≈ ₹16,801

Total payable ≈ ₹10,08,060  ·  Total interest ≈ ₹2,08,060

• Enter the on-road price minus your down payment as the loan amount.
• Car loan rates typically range from about 8% to 12% p.a. depending on lender, car type (new/used) and credit profile.
• Uses a fixed rate and reducing-balance method; some dealers quote a flat rate which understates the effective cost.
• Insurance, processing fees, GST and extended-warranty add-ons are not included.

Does a bigger down payment help?
Yes — it lowers the loan amount, so both the EMI and total interest fall.

New vs used car rates?
Used-car loans usually carry higher rates and shorter tenures than new-car loans.

Is flat rate the same as this?
No. Dealers sometimes quote a flat rate; the reducing-balance rate used here reflects the true cost more accurately.