Car Loan Calculator – EMI, Interest and Principal Amount

How Can Scripbox Car Loan EMI Calculator Help You?

Acquiring your own car has become a hassle-free process in today’s era. With easily available financing options, you can now bring home your dream car for yourself and your family. Scripbox’s Car Loan EMI Calculator allows you to determine the precise principal amount, interest rate and equated monthly instalments, before you apply for your car loan.

Scripbox’s EMI calculator for a Car Loan is a valuable tool that helps you make informed decisions when buying a new car. It enables you to plan your cashflows effectively for servicing your Car Loan. The Car Loan EMI Calculator assists you in determining the monthly loan instalment, i.e., the EMI for your Car Loan. This user-friendly calculator serves as a financial planning tool for prospective car buyers.

How to Use Scripbox Car Loan EMI Calculator?

Scripbox’s Car Loan EMI calculator is a free-to-use online tool that helps you estimate the EMI payouts. All you have to do is input the following information:

Input

• Loan Amount: The total amount you wish to borrow to buy a car.
• Annual Interest Rate: The rate at which the lender is lending money.
• Loan Tenure: The tenure in which you will repay the car loan. 

Output

Based on the above information, the calculator automatically calculates the following:

• Loan EMI: The monthly instalment that you must pay towards the car loan.
• Total Interest Payable: The total interest payable for the car loan.
• Total Amount: Total amount borrowed plus the total interest paid. 

Car Loan EMI Calculation Formula

The formula for Car Loan EMI Calculation is

Car Loan EMI = P*R*(1+R)^N / [(1+R)^N-1] 

where,

P – Principal loan amount

N – Loan tenure in months

R – Monthly interest rate

Car Loan Interest Rates and EMI in Top Banks India April 2024

Lowest Interest Rate	Bank Name	EMI per Lakh
8.85% p.a.	ICICI	Rs. 2069/-
8.6% p.a.	SBI	Rs. 2056/-
8.85% p.a.	HDFC	Rs. 2069/-
8.70% p.a.	UNION	Rs. 2066/-
8.80% p.a.	CANARA	Rs. 2066/-
9.70% p.a.	YES	Rs. 2110/-
8.75% p.a.	PNB	Rs. 2064/-
8.75% p.a.	IDBI	Rs. 2064/-
9.1% p.a.	AXIS	Rs. 2081/-
8.7% p.a.	BARODA	Rs. 2061/-

NOTE: EMI per lakh were computed by taking loan tenure as 5 year and car loan interest rates as updated on 27 April 2024

How to Calculate the EMI of a Car Loan Using the Formula?

Let’s assume Ms Neha takes a Car Loan of INR 7.5 lakhs for 5 years at 10% p.a. Using the formula, let’s calculate the loan EMI amount.

Monthly Interest Rate = 10/(12*100) = 0.0083

Loan tenure in months = 5*12 = 60

Car Loan EMI = 7,50,000 * 0.0083 (1+0.0083)^60 / [(1+0.0083)^60-1]

Car Loan EMI = ₹ 15,935

Total Interest Payable = ₹ 2,06,117

Total Amount = ₹ 9,56,117

Fixed Rate vs. Floating Rate of Interest for Car Loan

When it comes to car loans, borrowers have the option to choose between fixed and floating interest rates. Fixed rates remain constant throughout the loan tenure, while floating rates can change periodically. Various factors, such as taxes, liquidity, and inflation, can influence these interest rate fluctuations.

Fixed Rate EMIs

With fixed rate EMI calculation, the amount you need to pay towards your car loan remains unchanged for the entire loan duration. This stability is due to the lender offering a fixed interest rate for the entire period.

Floating Rate EMIs

Under the floating rate EMI calculation method, the amount you need to pay as EMI varies based on the applicable interest rate at any given time. The floating interest rate is tied to the market lending rate, leading to potential changes over time.

It’s important to note that the interest rate may increase or decrease during the loan period, depending on market fluctuations.

Advantages of Using a Car Loan Calculator

The following are the advantages of using Scripbox’s Car Loan Calculator:

• Planning Your Budget: Planning your budget becomes much easier once you have a clear idea of the EMI amount that needs to be paid. If you’re availing a large loan amount, you might consider opting for a longer tenure to accommodate your financial circumstances. To determine these details accurately, utilizing a car loan EMI calculator can be immensely helpful.
• Accurate Results: The calculator provides precise results based on the details you input. Unlike manual calculations, which may lead to inaccuracies, relying on the calculator ensures accuracy in determining your car loan EMI.
• Convenience: The primary purpose of a car loan EMI calculator is to save you time. Once you enter the relevant details, the calculator swiftly displays the results, eliminating the need for manual computations and providing you with instant information.
• Unlimited Usage: There are no limitations on how many times you can use the calculator. This means you can utilize it with various loan variables, allowing you to compare different lenders and determine the optimal down payment amount that suits your needs.