# Car Loan EMI Calculator: EMI, Interest and APR > Car loan EMI calculator for new and used cars. See the monthly EMI, total interest, processing fee with GST, true APR and a yearly schedule for 1-7 years. Source: https://trykosh.com/tools/car-loan-emi-calculator Free tool - Loans and credit cards # Car loan EMI calculator Check the EMI and total interest on a car loan before you visit the showroom. Try different tenures to see how much a longer loan really costs. Rules checked 25 October 2026Free - no sign-upRuns in your browser Monthly EMI INR 16,801 for 5 years at 9.5% a year Total interest**INR 2,08,089** Total of all EMIs**INR 10,08,089** Cost incl. fee (APR)**9.75%** Principal **INR 8,00,000**Interest **INR 2,08,089**Fee + GST **INR 4,720** Loan amount INR 8,00,000 Total interest INR 2,08,089 Processing fee INR 4,000 GST on fee (18%) INR 720 Amount reaching you if the fee is deducted INR 7,95,280 Total you pay back INR 10,12,809 Repayment schedule, year by year Loan year Principal paid Interest paid Balance left Year 1 INR 1,31,234 INR 70,383 INR 6,68,766 Year 2 INR 1,44,259 INR 57,359 INR 5,24,506 Year 3 INR 1,58,576 INR 43,041 INR 3,65,930 Year 4 INR 1,74,315 INR 27,303 INR 1,91,615 Year 5 INR 1,91,615 INR 10,003 INR 0 Interest adds 26% to what you borrow. Early EMIs are mostly interest; the principal share grows every month. ## Upload your statement and Kosh does this for you. Upload a bank or card statement and Kosh finds every EMI and card charge, then builds the fastest way out of debt that still fits your month. [Start free](/signup?via=tool-car-loan-emi-calculator) ## How the car loan EMI calculator works Car loans from banks are usually quoted on a reducing balance, for 1 to 7 years, and typically fund 80 to 90% of the on-road or ex-showroom price depending on the lender and your profile. Enter the amount you will borrow, not the car's price. The 9.5% default is only an illustration: rates vary with the lender, the car (new or used) and your credit score. The calculator works out the EMI with the standard reducing-balance formula and then the full schedule. Add the processing fee as a percentage to see the APR, which includes the fee and the 18% GST on it. Some lenders also charge documentation or stamp duty fees; you can fold those into the fee percentage. Dealer-arranged finance sometimes quotes a flat rate, where interest is charged on the full loan for the whole tenure. A flat rate looks about half of the equivalent reducing rate. If the quote says 'flat', convert it with the flat vs reducing calculator before comparing. A car loses value quickly, often 15 to 20% in the first year, so a long loan can leave you owing more than the car is worth. The year-by-year balance shows how long that might last on your loan. EMI = P x r x (1 + r)ⁿ / ((1 + r)ⁿ − 1) P amount financed after your down payment r yearly rate / 1,200 n tenure in months (12 to 84) ## Worked example: Arjun stretches to 7 years for an SUV Arjun in Jaipur finances INR 9.5 lakh of a compact SUV at 9.25% and picks 7 years to keep the EMI low. His EMI is INR 15,405 and the interest totals INR 3,44,056. The 0.5% fee of INR 4,750 plus INR 855 GST takes his APR to 9.44%. On a 5-year loan the EMI would be INR 19,836 with INR 2,40,154 of interest, so the two extra years cost him about INR 1.04 lakh. Monthly EMI INR 15,405 for 7 years at 9.25% a year Total interest**INR 3,44,056** Total of all EMIs**INR 12,94,056** Cost incl. fee (APR)**9.44%** Principal **INR 9,50,000**Interest **INR 3,44,056**Fee + GST **INR 5,605** Loan amount INR 9,50,000 Total interest INR 3,44,056 Processing fee INR 4,750 GST on fee (18%) INR 855 Amount reaching you if the fee is deducted INR 9,44,395 Total you pay back INR 12,99,661 Interest adds 36.2% to what you borrow. Early EMIs are mostly interest; the principal share grows every month. [Load this example into the calculator ->](?amount=950000&rate=9.25&tenure=7#calculator) ## Good to know - There is no income-tax benefit on a car loan for personal use. Section 80EEB covered interest on electric-vehicle loans, but only for loans sanctioned up to 31 March 2023. - Watch for bundled extras: insurance bought through the dealer, extended warranties and accessories added to the loan all increase the amount you pay interest on. - Fixed-rate car loans may carry a prepayment charge of a few percent. Check the Key Fact Statement before signing if you plan to close the loan early. - The lender is recorded as hypothecation holder on your RC. After the last EMI, get the NOC and have the hypothecation removed at the RTO. ## Frequently asked questions What is the EMI on an INR 8 lakh car loan? At 9.5% for 5 years, the EMI on INR 8 lakh is about INR 16,800, and you pay around INR 2.08 lakh in interest. Over 7 years the EMI drops to roughly INR 13,075 but interest rises to about INR 2.98 lakh. How much down payment should I make on a car? Lenders often fund up to 85-90% of the price, but putting down at least 20% keeps the EMI and interest manageable and reduces the chance of owing more than the car is worth. The car affordability calculator uses a 20% down payment as its starting point. Are used-car loans more expensive? Usually yes. Used-car loans tend to carry higher rates, shorter tenures and lower funding percentages than new-car loans because the collateral is older and harder to value. Enter the actual rate offered to see the EMI. Should I take a 7-year car loan? Only if the lower EMI is the difference between affordable and not. You pay interest for longer, and the car depreciates faster than the balance falls in the early years. A 4 to 5 year loan is a more common choice. ## Sources and assumptions - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.