Car Loan EMI Calculator

New car loans typically carry 8.7-11% p.a. at major banks like SBI, HDFC, and ICICI. Used car loans are higher, usually 12-16% p.a. Your final rate depends on CIBIL score, income, and loan tenure.

EMI = [P × r × (1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is tenure in months. This calculator handles it automatically — just enter the amount, rate, and years.

Most banks allow car loans for up to 7 years (84 months). Longer tenure lowers EMI but significantly raises total interest paid. A 5-year tenure usually strikes the best balance.

Car loan interest is tax-deductible only if the car is used for business. Salaried individuals cannot claim deduction on a personal car loan — only self-employed/business owners can claim interest as a business expense.

Car loan wins if you plan to keep the car 5+ years and want ownership. Leasing wins if you want to change cars every 2-3 years, and it can be tax-efficient if structured as a salary component through your employer.