Car Loan Calculator

Car Loan Calculator

Loan Summary

Monthly EMI
₹14,710
Total Interest
₹182,600
Total Payment
₹882,600
Loan Amount
₹700,000

Amortization Schedule (First 12 Months)

Month Payment Date EMI Principal Interest Balance

Smart Car Loan Strategies & Depreciation Guide

Car loans have unique considerations due to rapid vehicle depreciation. Our calculator helps you avoid negative equity by showing the true cost of ownership including interest, insurance, and resale value impact.

2023 Car Loan Rate Comparison

Bank New Car Rate Used Car Rate Max Tenure
SBI 8.70% - 9.80% 9.50% - 11.50% 7 years
HDFC 8.85% - 10.25% 10.25% - 12.75% 7 years
ICICI 8.95% - 10.50% 10.00% - 12.50% 5 years

Car Depreciation Timeline

Year 1: -20%
Year 2: -36%
Year 3: -49%
Year 4: -59%
Year 5: -67%

20/4/10 Rule

Put 20% down, choose ≤4 year tenure, and keep total auto costs (loan+insurance+fuel) ≤10% of income.

EV Special Rates

Many banks offer 0.5-1% lower rates for electric vehicles. Some states provide additional subsidies.

Pre-Close Early

Refinance after 1-2 years when your car's value drops sharply to reduce interest burden.

Total Cost of Ownership

  • Down Payment: 15-30% of ex-showroom price
  • Insurance: 2-4% of IDV annually (mandatory for loans)
  • Processing Fees: 0.5-2% of loan amount + GST
  • Road Tax: 4-15% of cost depending on state
Smart Loan Amount Formula:
(Car Price × 0.8) - (Annual Income × 0.1 × Loan Tenure) = Ideal Borrowing Limit

Car Loan FAQs

Q: What documents are needed for a car loan?
A: KYC documents, salary slips (last 3 months), address proof, car quotation, and driving license copy.

Q: Can I get 100% financing for a car?
A: Some lenders offer it for new cars, but it leads to higher EMIs and negative equity. 20% down payment is recommended.

Q: Is it better to take a longer car loan?
A: No. Cars depreciate fastest in 3-5 years. Match loan tenure with warranty period (typically 3-5 years).