Car loan calculator built around the on-road price
Car prices are advertised ex-showroom, but you pay — and usually borrow against — the on-road price: the ex-showroom price plus registration and road tax, the first year’s insurance and the accessories added at delivery. This car loan calculator builds that figure first, then applies your down payment, interest rate and tenure to give the EMI, the total interest and what the car really costs you once the loan is paid.
You can add a balloon payment to lower the EMI, see what the car will be worth when the loan ends, and compare the EMI for every tenure from one to seven years at a new-car and a used-car rate side by side. Everything runs in your browser; the results are estimates, not financial advice.
How to use the Car Loan Calculator
- Choose New car or Used car.
- Enter the Ex-showroom price, Registration and road tax, first-year Insurance and accessories from the dealer’s quote.
- Set the Down payment as a share of the on-road price and the Tenure in years.
- Check the new-car and used-car rates, and add a Balloon payment or the processing fee if your offer has them.
- Read the EMI, total cost and value at the end, compare tenures in the table, and press Download CSV for the schedule.
Car Loan Calculator features
On-road price breakdown
Ex-showroom, road tax, insurance and accessories added up and shown with interest and fees in one bar; the on-road price calculator works out state road tax and insurance.
Balloon option
Move part of the loan to the last EMI and see the lower EMI, the extra interest and the lump sum due.
Value at the end
An estimate of the car’s insured value when the loan ends, from the insurance depreciation schedule.
New vs used, every tenure
EMI and total interest for one to seven years at both rates in one table.
Worked example: a ₹8.5 lakh car over 5 years
The dealer quotes ₹8,50,000 ex-showroom, ₹76,500 registration and road tax, ₹42,000 insurance and ₹15,000 for accessories and FASTag — an on-road price of ₹9,83,500. Paying 20% down (₹1,96,700) leaves a ₹7,86,800 loan. At 9% for five years the EMI is ₹16,333 and the interest ₹1,93,160. With a ₹4,000 fee the APR is 9.22%, and the car costs ₹11,80,660 in all.
A 20% balloon cuts the EMI to ₹14,246 but leaves ₹1,57,360 due with the last EMI and raises the interest to ₹2,25,340. After five years the insurance tariff values the car at half its ex-showroom price, about ₹4,25,000, so the balloon is covered — but only if you sell the car or have the cash.
How the tenure changes the cost
The same ₹7,86,800 loan at 9% (new) and 12.5% (used):
- Going from five to seven years lowers the EMI by ₹3,674 but adds ₹83,386 of interest — and the car keeps losing value while you pay.
- A popular rule of thumb is 20% down, a loan of four years or less, and total car costs under about 10% of income — the car affordability calculator turns it into a price. Use it as a check, not a rule.
| Tenure | EMI at 9% | Interest at 9% | EMI at 12.5% | Interest at 12.5% |
|---|---|---|---|---|
| 3 years | ₹25,020 | ₹1,13,921 | ₹26,321 | ₹1,60,767 |
| 5 years | ₹16,333 | ₹1,93,160 | ₹17,701 | ₹2,75,283 |
| 7 years | ₹12,659 | ₹2,76,546 | ₹14,100 | ₹3,97,636 |
Insured value by age (IRDAI depreciation)
Insurers set a car’s insured declared value (IDV) from the ex-showroom price less this depreciation; beyond five years it is agreed with the insurer.
| Age of car | Depreciation |
|---|---|
| Up to 6 months | 5% |
| 6 months to 1 year | 15% |
| 1 to 2 years | 20% |
| 2 to 3 years | 30% |
| 3 to 4 years | 40% |
| 4 to 5 years | 50% |
New and used car loans in India (as of October 2026)
- New-car loans run up to seven years, and some lenders finance the full on-road price — SBI’s new car loan scheme, for example, lends up to 100% of it.
- Used-car loans usually cost more, run shorter and are based on the lender’s valuation, not the asking price.
- Car loans are usually fixed-rate, so foreclosure charges follow the lender’s policy and must be in the sanction letter. Running costs are extra — estimate fuel with the fuel cost calculator.
Car Loan Calculator FAQ
Is a car loan given on the ex-showroom or the on-road price?
Lenders quote either; many finance a share of the on-road price, which includes registration, road tax and insurance. The car loan calculator works from the on-road price so your down payment covers everything you pay at delivery.
How much down payment should I make on a car?
Lenders may fund 80–100% of the on-road price, but a larger down payment cuts the interest and keeps the loan below the car’s falling value. 20% is a common target.
What is the longest tenure for a car loan?
Usually seven years for a new car and less for a used one. Longer tenures lower the EMI but cost far more interest.
What is a balloon payment on a car loan?
A lump sum due with the last EMI. It lowers each EMI because part of the loan is not repaid until the end, but you pay interest on that part for the whole tenure.
Why is a used car loan more expensive?
The car is worth less and loses value unpredictably, so lenders charge a higher rate, lend a smaller share and offer shorter tenures. Compare both in the tenure table.