Car Loan Calculator
If you are planning to buy a car by taking a bank loan, then this Car Loan Calculator is for you. Use this tool to save time on calculating any vehicle loan EMI. You just need to enter the loan amount, loan tenure and the rate of interest to check the car loan EMI value and total amount paid on loan, on interest.
Car Loan EMI Calculator: Our calculator also helps you to check any vehicle loan EMI amount by giving the required details. It acts as the best financial tool for individuals. Read on to find the car loan calculation formula, steps to calculate car loan EMI with the loan amount. Check the advantages of using the Car Loan Calculator and real-time examples on car/auto loans.
How to Determine Car Loan EMI?
Obtain the steps to calculate the car loan EMI amount for the given loan amount, rate of interest and loan term here.
- Get the loan tenure in months, interest rate and the car loan principal amount.
- Substitute all these values in the formula of car loan EMI.
- Do the required math operations to check the EMI for the car loan.
- Multiply one month EMI with the loan tenure to get the total loan EMI amount.
- Add the result to the loan amount to get the total paid on loan.
Car Loan Calculation Formula
Nowadays it has become easier to fulfil your buying new car dreams with various loan schemes provided by banks and different lenders. In general, car loans are offered at various interest rates and repayment tenure of up to 8 years. The basic terms of car loan EMI are the principal amount or loan amount, interest rate and repayment tenure. You can calculate the monthly payment amount easily using below-given formula.
Car Loan EMI formula is EMI = PV x i x [(1+i)n/((1+i)n-1)]
Total paid on interest for car = n x EMI
Total paid on car loan = PV + n x EMI
Here,
EMI is the Equated Monthly Installment that you need to pay every month.
PV is the principal amount
i is the rate of interest applicable to your vehicle loan
n is the tenure for car loan in months
Example:
I have taken a loan principal amount of $8,000, tenure of 5 years and interest rate of 10% p.a. How amount do I need to pay as EMI?
Solution:
Given that,
Loan amount PV = $8000
Loan tenure n = 5 years = 60 months
Rate of ineterest i = 10% p.a = 0.83
Car Loan EMI formula is EMI = PV x i x [(1+i)n/((1+i)n-1)]
EMI = 8000 x 0.83 x [(1+0.83)60/((1+0.83)60-1)]
= 169.98
Total paid on interest for car = n x EMI
= 60 x 169.98
= 2,198.58
Total paid on car loan = PV + n x EMI
= 8000 + 60 x 169.98
= 10,198.58
Therefore, car EMI is $169.98, total interest is $2,198.58 and total amount is $10,198.58.
Explore more financial concepts from our site Arithmetic Calculators by using our free online calculators and also make your calculations easy during homework.
Procedure to Use Car Loan EMI Calculator
- Provide car loan principal amount, rate of interest, loan tenure in the input fields.
- Hit the calculate button.
- The car EMI amount, total interest and total loan amount will get displayed.
Frequently Asked Questions on Car Loan Calculator
1. Who can avail a Car Loan?
Anyone who falls under the working employee can avail a car loan. The categories are salaried individuals, partnership firms, self-employed individuals, HUFs and Trusts.
2. Can I avail a Car Loan on my existing four-wheeler?
Yes, you can take a car loan on your existing four-wheeler. You can check our calculator to know the car loan EMI's for the loan amount and tenure.
3. Is it smart to do a 72-month car loan?
A 72-month car loan can make sense in some cases, but it applies only when you have good credit. If you have bad credit, a 72-month vehicle loan can sound appealing due to the lower WMI but in reality, you are going to pay more than you bargained for.
4. What is the difference between the fixed-rate and floating rate of interest?
Under the fixed rate EMI calculation, the EMI have to pay towards the car loan remains the same throughout the loan term. Under the floating rate EMI calculations, the EMI payable differs based on the interest rate applicable at that time.
5. What are the benefits of using the Car Loan EMI Calculator?
The car loan EMI calculator available on the third party website or on the bank website is easy to use. It can be used any number of times for free of cost. You can also compare the EMI amount by changing the loan tenure, you can plan a budget, break up the due amount is given and many more. The EMI calculations are time-consuming and human errors in cases. Just give the loan amount, loan term and interest rate to get the result.
