Owning a car today is more of a necessity than a luxury. With increasing travel needs and limited public transport options in many areas, buying a car has become an important financial decision for many households. Since a car involves a significant upfront cost, most buyers choose to finance it through a car loan.
Car loans usually have a shorter repayment tenure compared to other loans. Missing or delaying repayments can result in penalties and, in extreme cases, repossession of the vehicle. This makes it essential to understand your monthly EMI obligation in advance. Your EMI should comfortably fit within your monthly budget after accounting for regular expenses. Paytm Money's Car Loan EMI Calculator helps you estimate your EMI accurately within seconds.
Before applying for a car loan, it is important to keep the following points in mind:
Proper planning helps you choose the right loan amount and avoid financial stress during repayment.
A car loan EMI calculator helps you estimate the monthly installments you need to pay for your car loan.
The calculator considers three key inputs:
Based on these details, it calculates your EMI instantly using a standard financial formula.
EMI = [P × R × (1+R)^N] / [(1+R)^(N−1)]
Where:
EMI = Equated Monthly Installment
P = Principal loan amount
R = Monthly interest rate
N = Loan tenure in months
Suppose you take a car loan of ₹10 lakh for 2 years at an interest rate of 20% per annum.
First, convert the values into monthly units:
Loan tenure = 2 × 12 = 24 months
Monthly interest rate = 20 ÷ 12 = 1.66% per month
Using the EMI formula, the monthly EMI comes to approximately ₹50,896.
An EMI calculator performs these calculations instantly. You do not need to convert values or apply formulas manually. Simply enter the loan amount, interest rate, and tenure to get your EMI in seconds.
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