Vehicle Finance Setup
Formatting choice only. No exchange rate conversion is applied.
₹ 12,00,000
₹
₹ 2,00,000
₹
9.5%
%
5 Years
Years
15%
%
₹ 0
₹
Repayment Summary
Monthly EMI
₹ 21,009
Total Loan Amount
₹ 10,00,000
Total Interest Payable
₹ 2,60,540
Depreciation & Negative Equity Tracker
Cars lose value rapidly. See your car's projected market value vs. your remaining loan balance over the tenure:
Estimated Value at Loan End
₹ 0
Negative Equity Exposure
None
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Car Loan Calculation Formulas
The mathematical operation to compute auto loan monthly EMIs is formulated as:
EMI = [ P × r × (1 + r)n ] / [ (1 + r)n - 1 ]
Where:
- P = Principal Loan Amount (Car Price - Down Payment)
- r = Monthly Interest Rate (annual rate / 12 / 100)
- n = Number of monthly installments (Years × 12)
Annual Car Loan Amortization Schedule
| Year | Opening Balance | EMI Payments | Principal Paid | Interest Paid | Closing Balance |
|---|
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Frequently Asked Questions
A flat interest rate calculates interest on the initial full principal amount throughout the tenure, resulting in higher overall costs. A reducing interest rate (which is standard and calculated by our tool) computes interest on the outstanding principal balance, reducing your costs as you pay down the loan.
Yes, most banks allow prepayment on car loans, but they may levy prepayment foreclosure charges (typically 2% to 5% of the outstanding balance) if settled before a certain lock-in period (e.g. 1 year).