Car Loan Calculator
Calculate your monthly car loan / auto loan payment, total interest and total cost in seconds.
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Enter the amount you are borrowing, the annual interest rate and the term in years, and this car loan calculator shows your monthly payment, the total interest and everything you will repay. The figures carry no currency sign, so it works for a ₹8 lakh hatchback loan in India as well as an auto loan in dollars or pounds.
What to put in each field
- Car loan amount: the on-road price minus your down payment and any exchange value for your old car. Add accessories or insurance only if the lender is financing them too.
- Interest rate % (annual): the reducing-balance rate from the sanction letter. If the dealer quotes a "flat" rate, read the section below before entering it.
- Term (years): 5 years means 60 monthly payments. Decimals work, so 3.5 gives 42 months.
Click Calculate payment to see the monthly payment, loan amount, total interest, total paid and the term in months. Numbers follow your browser's locale, so an Indian-English browser groups digits in lakhs.
Worked example: ₹8 lakh at 9%
The payment uses the standard amortisation formula P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate (9 ÷ 12 ÷ 100 = 0.0075) and n is the number of months. For ₹8,00,000 over 60 months that gives ₹16,606.68 a month, ₹9,96,401.05 repaid in total and ₹1,96,401.05 of interest. Here is how the term changes things:
| Term | Monthly payment | Total interest |
|---|---|---|
| 3 years | ₹25,439.79 | ₹1,15,832.30 |
| 5 years | ₹16,606.68 | ₹1,96,401.05 |
| 7 years | ₹12,871.26 | ₹2,81,186.06 |
Stretching from five to seven years lowers the payment by ₹3,735.42 but adds ₹84,785.01 of interest, on a car that loses value every year.
Flat-rate quotes versus reducing balance
Some dealers advertise a low "flat" rate. Flat interest is charged on the full original amount for the whole term, even though you repay part of it every month. At "5% flat" on the same ₹8 lakh for five years, interest is 8,00,000 × 5% × 5 = ₹2,00,000, so the payment is ₹10,00,000 ÷ 60 = ₹16,666.67. That is slightly more than the 9% reducing-balance payment above; the flat quote is really about 9.15% in reducing-balance terms. Ask for the reducing-balance rate or APR and enter that here.
What the monthly figure leaves out
- Processing and documentation fees, and GST charged on those fees.
- Motor insurance, which lenders usually want as comprehensive cover for the whole loan period.
- Fuel, servicing, tyres and parking, which often add up to more than people expect.
- Foreclosure or part-prepayment charges, which many fixed-rate car loans carry; read that clause before signing.
A widely quoted rule of thumb is 20/4/10: put down at least 20%, borrow for no more than four years, and keep total car costs under 10% of gross income. Treat these results as estimates rather than financial advice, and confirm the final numbers with your lender. If you would rather save up and pay cash, the Savings Goal Calculator shows the monthly amount needed, and the EMI Calculator covers other kinds of borrowing.