Car Loan EMI Calculator
Calculate your car loan EMI, total interest, and view a monthly amortization schedule. Enter the car price, down payment, interest rate, and loan term. See also Auto Loan Calculator and EMI Calculator.
How to Calculate Car Loan EMI
Car loan EMI is calculated by first determining the loan amount (car price minus down payment), then applying the standard EMI formula. The EMI remains fixed throughout the loan term, with each payment split between principal repayment and interest. Early payments have a higher interest component, while later payments go mostly toward principal. Most car loans range from 36 to 72 months.
Car Loan EMI Formula
Loan Amount = Car Price − Down Payment
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
Where:
P = Loan amount
r = Monthly interest rate (annual rate / 12 / 100)
n = Loan term in months
Example
Car Price: $25,000, Down Payment: $5,000
Loan Amount = $25,000 − $5,000 = $20,000
Rate: 6%, Term: 48 months
r = 6 / 12 / 100 = 0.005
EMI = $469.70
Total Payment = $469.70 × 48 = $22,545.60
Total Interest = $22,545.60 − $20,000 = $2,545.60
Car Loan EMI Reference Table
| Loan Amount | Rate | 36 mo EMI | 48 mo EMI | 60 mo EMI | 72 mo EMI |
|---|---|---|---|---|---|
| $10,000 | 5% | $299.71 | $230.29 | $188.71 | $161.05 |
| $15,000 | 5.5% | $452.42 | $348.33 | $286.02 | $244.85 |
| $20,000 | 6% | $608.44 | $469.70 | $386.66 | $331.47 |
| $25,000 | 6% | $760.55 | $587.13 | $483.32 | $414.34 |
| $30,000 | 6.5% | $918.87 | $710.42 | $585.36 | $502.61 |
Frequently Asked Questions
What is a typical car loan term?
The most common car loan terms are 36, 48, 60, and 72 months. 60 months (5 years) is the most popular choice, balancing affordable monthly payments with reasonable total interest. Terms of 84 months are available but result in significantly more interest.
How much down payment should I make?
Experts recommend at least 20% down on a new car and 10% on a used car. A larger down payment reduces the loan amount, lowers your EMI, and helps avoid being "underwater" (owing more than the car is worth) due to depreciation.
Is a shorter loan term always better?
Shorter terms mean higher monthly payments but less total interest. A $20,000 loan at 6% costs $1,374 in interest over 36 months but $3,199 over 60 months. Choose the shortest term you can comfortably afford.