Loans & Debt · Before Taking a Loan
Car Loan Calculator — On-road Price, EMI & Total Cost
Work out a car loan from the ex-showroom price: add road tax (RTO), insurance and extras, take off dealer discounts, your down payment and any trade-in, and see the loan amount, EMI, interest, processing fee and what the car really costs you — with a check of the EMI against your income.
Your inputs
Quick start — try a typical case
₹ 10 lakh
Varies by state, fuel type and price — typically 4–15 %. Use 0 if the price is already on-road.
₹ 40 thousand
₹ 15 thousand
₹ 2.5 lakh
Lenders usually fund up to 80–90 % of the on-road or ex-showroom price.
Your result Live
Monthly EMI
₹18,786
₹9,05,000 loan for 5 years at 9.00%
- On-road Price
- ₹11,55,000 (ex-showroom ₹10,00,000 + RTO ₹1,00,000 + insurance & extras)
- Loan Amount
- ₹9,05,000 · 78% of the on-road price
- Total Interest
- ₹2,22,179
- Processing Fee (with GST)
- ₹5,340
- What the Car Really Costs You
- ₹13,82,518 — ₹2,27,518 more than the on-road price
- Down payment & trade-in · 18%₹2,50,000
- Loan principal · 65%₹9,05,000
- Interest · 16%₹2,22,179
- Fees · <1%₹5,340
A car loses value quickly (often 15–20 % in the first year), so a bigger down payment and a shorter tenure keep you from owing more than the car is worth.
Road tax and insurance differ by state, fuel and model — check the dealer's on-road quotation.
How this is calculated
On-road = ex-showroom + RTO + insurance + extras − discount · Loan = on-road − down payment − trade-in · EMI = L·r·(1+r)ⁿ ÷ ((1+r)ⁿ − 1)
- r, n
- Monthly rate (yearly ÷ 12) and number of monthly EMIs
The price in a car advert is usually ex-showroom. Road tax, registration, insurance and accessories make the on-road price — and that's what you finance. Subtract your down payment and trade-in to get the loan; the EMI follows the standard reducing-balance formula.
Assumptions & sources
- Reducing-balance loan with monthly EMIs; fixed rate.
- Processing fee with 18 % GST paid upfront.
- 1Key Facts Statement (KFS) for Loans & Advances — includes the Annual Percentage Rate (APR); applies to retail and MSME term loans from 1 October 2024 — Reserve Bank of India (circular of 15 April 2024)
- 2Motor vehicle registration and road tax — Ministry of Road Transport & Highways — Parivahan Sewa
Calculator ID LOAN-CAR-001 · version 1.0.0
Common questions
How much down payment should I make on a car?
At least 20 % of the on-road price is a common guide; lenders usually finance up to 80–90 %. A bigger down payment lowers both the EMI and the total interest.
Is a longer car loan tenure better?
It lowers the EMI but raises total interest, and you may owe more than the car is worth for longer. Many planners suggest no more than 4–5 years.
Does this work for bikes or boats?
Yes — enter the price and the loan terms; set road tax to whatever applies (or 0).