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Car loan calculator.
Car loans are often quoted at a flat rate that sounds cheap, because it is charged on the whole loan even as you repay it. This shows the EMI and the rate it really works out to.
₹
₹
yrs
%
The rate is
₹
Every month you pay
₹16,607
17% of your take-home. Over 10 to 15% of take-home, a car starts to crowd out everything else.
What you borrowInterest
- Loan
- ₹8,00,000
- Total interest
- ₹1,96,401
- Real (reducing) rate
- 9.00%
- Car costs you in all
- ₹11,96,401
How it adds up
- On-road price₹10,00,000
- minusYou put down₹2,00,000
- equalsLoan₹8,00,000
- plusInterest at 9%₹1,96,401
- equalsYou repay in all₹9,96,401
- divided by60 months, so each EMI₹16,607
What this assumes
Monthly EMIs over the term, no prepayment. A flat rate is converted to the reducing rate that gives the same EMI. Leaves out insurance, processing fees and any dealer add-ons financed with the car.
Rules and rates from
- The reducing-balance EMI formula banks use
Education only, not investment, tax or legal advice. I am not a SEBI-registered investment adviser.
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