Car Loan EMI Calculator 2024
India is the fourth largest market for 4 wheelers in the world. The fascinations on new cars keep increasing. India’s automobile market is filled with diverse range of cars from compact hatchbacks to Sedan to luxury SUVs.
Getting your dream car these days is very easy. There are a multitude of options for car loans available in the market. You can get a car loan easily within a day provided you have all the documents ready for the loan.
What is a Car Loan EMI?
A Car Loan EMI (Equated Monthly Instalment) is the fixed amount that a borrower pays each month as a repayment to the lender over an agreed tenure. It includes both the principal and the interest components.
What is a Car Loan EMI Calculator?
Calculating the monthly EMI which carries both the principal and interest part can be complex. A Car Loan EMI calculator helps you to determine the EMI based on the loan amount, tenure, and interest rate. By entering these details, the calculator will provide the EMI that you are obligated to pay towards the loan taken
How Does Car Loan EMI Calculator Work?
Car Loan calculator uses a formula to compute the EMI. You must input the loan amount, tenure, and the interest rate and the calculator automatically computes the EMI you need to pay. It also provides an amortization chart
Formula for Car Loan EMI Calculation
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
Where
- P is the principal loan amount,
- r is the monthly interest rate, and
- n is the number of Monthly Installments
Example
For a loan amount of ₹8,00,000 at an interest rate of 16.3% for 6 years, the EMI will be approximately ₹ 17,486
Benefits of Car Loan EMI Calculator
- It can be used to calculate the EMI quickly and accurately
- Adds to financial clarity by providing a clear depiction of repayment through amortization chart
- It can be used to compare different EMI
- It facilitates informed decision-making without needing manual calculations
How to Use Car Loan EMI Calculator?
- Enter the Input amount, tenure, and interest rate
- The EMI calculator will automatically compute the EMI and total interest rate towards the loan.
FAQs for Car Loan EMI Calculator
1. What information is needed to use the Car Loan EMI calculator?
You need to input the loan amount, interest rate, and tenure to clearly calculate the EMI
2. Can the EMI amount change during the tenure?
Unless the availed loan is a floating interest loan, the EMI remains constant throughout the tenure
3. How accurate are the results of the EMI calculator?
The calculator provides accurate calculation of EMI. Through this, you can compare different EMIs
4. Does the calculator consider pre-payment options?
No it does not include pre-payment. You need to check with the lender for recalculations related to prepayments for your Car Loan
5. Does the calculator display the amortization schedule?
Some calculators also show an amortization schedule, giving a breakdown of the principal and interest components for each EMI.
