A Car Loan EMI Calculator helps you determine your monthly installments based on loan amount, interest rate, and tenure.
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A Car Loan Calculator is a financial tool that helps borrowers estimate their monthly EMI (Equated Monthly Installment) when taking an auto loan. It considers the loan amount, interest rate, and repayment tenure to determine affordable monthly payments.
How Does a Car Loan Calculator Work?
The calculator uses a standard EMI formula to compute monthly payments based on:
- Loan Amount (P) – The total amount borrowed to purchase the car.
- Interest Rate (R) – The annual rate charged by the lender.
- Loan Tenure (N) – The repayment period in months.
Car Loan EMI Formula
The formula for calculating EMI is:
Where:
- P = Principal loan amount
- R = Monthly interest rate (Annual rate / 12 / 100)
- N = Loan tenure in months
Example Calculation
If you take a car loan of $5,00,000 at an annual interest rate of 9% for 5 years (60 months), the EMI calculation would be:
Convert annual rate to monthly rate:
Benefits of Using a Car Loan Calculator
✅ Budget Planning – Helps determine how much you can afford before buying a car.
✅ Compare Loan Offers – Adjust interest rates and tenures to find the best deal.
✅ Down Payment Estimation – Shows how a higher down payment reduces EMI.
✅ Interest Savings – Helps choose shorter tenures to save on total interest paid.