Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning and loan management.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning and loan management.
Use this calculator to determine your monthly EMI (Equated Monthly Installment) for a car loan. Simply enter the loan amount, interest rate, loan tenure, and it will calculate the EMI.
Car Loan EMI Calculator
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Car Loan EMI Formula
EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Formula Source: Investopedia
- P: Principal loan amount.
- r: Monthly interest rate (annual rate divided by 12).
- n: Total number of payments (loan tenure in months).
Related Calculators
What is Car Loan EMI?
Car Loan EMI (Equated Monthly Installment) is the amount you need to pay each month for a loan you take to purchase a car. It is calculated based on the loan amount, interest rate, and loan tenure.
How to Calculate Car Loan EMI (Example)
- Step 1: Enter your loan amount, interest rate, and loan tenure.
- Step 2: Click “Calculate” to find your EMI.
- Step 3: The EMI amount will be displayed along with the breakdown of the calculation.
Frequently Asked Questions (FAQ)
What is EMI? EMI is the amount you pay monthly towards your loan. It includes both principal and interest.
Can EMI amount change? EMI can change if your interest rate changes during the loan tenure.
How to reduce EMI? You can reduce EMI by opting for a longer tenure or refinancing the loan.