Car Loan EMI Calculator

A car loan EMI calculator is a handy financial planning tool that will help you understand how much you need to pay as EMI on your car loan. EMIs or equated monthly instalments are typically fixed and are to be repaid regularly to the lender.

The amount of EMI depends on various factors like the amount borrowed, the rate of interest on the loan and the duration of repayment. A car loan monthly EMI calculator considers all these aspects and computes the amount to be repaid by the borrower each month.

It is available free of cost online on various platforms. The car loan EMI calculator on the Motilal Oswal Research 360 Platform can be particularly useful if you are looking for a quick and easy way to compute the EMIs for a car loan you intend to obtain.

One of the most common goals for anyone climbing the career ladder is to buy their dream car. With the current inflation rates, however, this can be an expensive goal for many people. The prices of cars can range from around Rs. 5 lakhs or so to Rs. 30 lakhs or more. Fortunately, a car loan can be useful here.

By borrowing the sum required to buy a car, you can cross this goal off your list. However, banks and financial institutions levy interest on the loan amount, which you will have to repay regularly via EMIs.

A car loan monthly EMI calculator helps you evaluate this amount. By knowing your car loan EMI, you can make smarter financial decisions. Here are the top benefits of a car loan EMI calculator:

• Easier budgeting decisions

  With a car loan EMI calculator, you will be able to understand how much you will have to repay each month. This will help you budget your finances accordingly, so you can set aside the amount required to pay your car loan EMIs.

• Interest breakdown and analysis

  The car loan EMI calculator also shows you a breakdown of the amount borrowed, interest payable and the total amount payable over the loan tenure. This will help you decide if borrowing the amount required is financially feasible for you.

• Comparison of loan offers

  With a car loan EMI calculator, you can also run multiple iterations free of cost to compare different loan offers and structures. This will help you assess how changes in the amount borrowed, interest rates and repayment tenures affect the EMIs.

Although a car loan EMI calculator can help you find the monthly repayment amount easily, you may want to know the formula used by this online tool. To calculate the EMI amount for a car loan, this online calculator uses the following formula:

EMI = P x R x [(1 + R)n ÷ {(1 + R)n — 1}]

Here,

P is the amount of car loan taken

R is the interest rate (expressed as a monthly rate, which you get by dividing the annual interest rate by 12)

n is the total number of EMIs to be paid or the total repayment tenure in months

For example, say you borrow Rs. 8 lakhs through a car loan. The rate of interest is 12% per annum (or 1% per month) and the repayment tenure is 5 years or 60 months. Plugging these values into the car loan EMI formula, we get a monthly repayment amount of Rs. 17,796.

Manually calculating this can be time-consuming and prone to human error. The car loan EMI calculator accessible on the Motilal Oswal Research 360 Platform computes this amount instantly for you — without any errors or delays.

Using a car loan EMI calculator is quite easy, even for beginners. You just need to follow the steps outlined below:

• Step 1: Input the amount of car loan that you want to borrow.
• Step 2: Enter the rate of interest per annum.
• Step 3: Enter the repayment tenure in years.
• Step 4: Submit these details to get the results.

With these metrics, the car loan EMI calculator finds the amount payable monthly. It then displays the EMI amount along with the total interest payable and the total amount payable.

A car loan amortisation schedule is a detailed breakup of how the EMIs are constituted and how much of the loan remains to be repaid. It is typically depicted in a tabular format.

The amount of EMI is fixed in the amortisation schedule, but the proportion of the principal and interest components in each EMI varies. Over time, the interest component typically decreases and the principal component increases.

The exact schedule of amortisation varies from one loan to another, based on the lender’s terms, the loan amount, the type of interest rate etc. So, ensure that you always check out the amortisation schedule if you avail of a car loan for your vehicle purchase.

The car loan EMI calculator on the Research 360 platform can be useful to you in many ways. Check out the key advantages of this financial planning tool.

• Free and unlimited use: The car loan EMI calculator is free to use. You can also use this tool as many times as required. There is no limit to the number of loan EMI calculations you can perform with this calculator.
• Easy to use for everybody: Easy to use for everybody
• Financial Planning: You can use the future return projections that a SIP investment return calculator provides to set clear, achievable financial goals aligned with your current investment capacity.
• Time and money savings:With the car loan EMI calculator, you can save time and money and find the loan that best fits your budgetary constraints and financial requirements.