Auto Car Loan Calculator India
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Reviewed by Calculator Editorial Team
Calculating an auto car loan in India involves determining the Equated Monthly Installment (EMI), total interest payable, and the total repayment amount. This calculator helps you estimate these figures based on the loan amount, interest rate, and loan tenure.
How to Use This Calculator
To use the auto car loan calculator, follow these simple steps:
- Enter the loan amount you wish to borrow.
- Input the interest rate per annum offered by the lender.
- Select the loan tenure in years or months.
- Click the Calculate button to get the EMI, total interest, and total repayment amount.
The calculator will display the Equated Monthly Installment (EMI), total interest payable, and the total repayment amount. You can also view a breakdown of the loan repayment schedule in the form of a chart.
Formula Used
The EMI for an auto car loan is calculated using the following formula:
EMI = P × r × (1 + r)^n / [(1 + r)^n - 1]
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of monthly installments (loan tenure in months)
Once the EMI is calculated, the total interest payable is determined by subtracting the loan amount from the total repayment amount.
Worked Example
Let's consider an example to understand how the auto car loan calculator works.
Example: You want to buy a car and take a loan of ₹5,00,000 at an interest rate of 8% per annum for a tenure of 5 years.
Using the formula:
Monthly interest rate (r) = 8% ÷ 12 = 0.0066667
Number of monthly installments (n) = 5 × 12 = 60
EMI = 5,00,000 × 0.0066667 × (1 + 0.0066667)^60 / [(1 + 0.0066667)^60 - 1]
EMI ≈ ₹10,650.00
Total repayment amount = EMI × n = ₹10,650 × 60 ≈ ₹639,000
Total interest payable = Total repayment amount - Loan amount = ₹639,000 - ₹5,00,000 = ₹1,39,000
This example shows that for a ₹5,00,000 loan at 8% interest over 5 years, the monthly EMI would be approximately ₹10,650, with a total interest payable of ₹1,39,000.