**User Guide: How Car Loan Calculator** **can be used?**

*Use our simple and effective car loan calculator to estimate your monthly EMI, total interest payable, and create a monthly repayment schedule for your car loan.*

**1. Loan Amount **

- Enter the total loan amount you wish to borrow in your currency
- Example: If you want to borrow Rs. 300,000, enter 300000 in this field.

**2. Interest Rate (%)**

- Input the annual interest rate as a percentage. This is the interest rate charged by the lender.
- Example: If the interest rate is 10%, enter 10.

**3. Select Tenure Type**

- Choose between “Years” and “Months” to specify the loan tenure.
- If you select “Years,” your input in the “Loan Tenure” field will be considered in years. If you choose “Months,” it will be considered in months.

**4. Loan Tenure**

- Enter the loan tenure, either in years or months, based on your previous selection.
- Example (Years): If you selected “Years” and you want a 5-year loan, enter 5.
- Example (Months): If you selected “Months” and you want a 60-month loan, enter 60.

**5. Calculate**

- After entering all the required information, click the “Calculate” button. The calculator will compute the results based on your inputs.

**Results:**

- Once you click the “Calculate” button, the Car Loan Calculator will provide the following information:
**Monthly EMI:**This is your estimated monthly Equated Monthly Installment (EMI), which includes both principal and interest.**Total Interest Payable:**The total amount of interest you’ll pay over the loan tenure.**Total Payable Amount:**The total amount you’ll repay over the entire loan tenure, including the principal amount and interest.**Monthly Repayment Schedule:**A table displaying a month-by-month breakdown of your repayment schedule, showing the principal, interest, EMI, and remaining balance for each month.

**6. Analyze Your Results**

- Carefully review the results to determine if the estimated EMI, total interest payable, and total payable amount align with your budget and financial plan.

**Important Notes:**

- The calculator provides an estimate, and actual loan terms may vary based on the lending institution’s policies and the terms of your specific car loan.
**Always consult with a financial advisor or lender for the most accurate and up-to-date information about your loan options.**

**7. Ready to Apply for Your Car Loan?**

- If you’re satisfied with the results and want to proceed with a car loan application, contact your chosen lender or financial institution to discuss the application process and loan terms in detail.

**Formula being used**

Calculating your monthly loan payment, or Equated Monthly Installment (EMI), helps you understand the financial commitment you’re making when you take out a loan. The EMI combines both the principal amount you borrow and the interest you need to pay, spread over the duration of the loan. Here’s a straightforward formula you can use to calculate your EMI:

EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]

**P**= Principal amount (the total amount of loan you’ve taken)**R**= Monthly interest rate (annual interest rate divided by 12)**N**= Tenure in months (total number of months over which you plan to repay the loan)

**Important Notes:**

- Convert the annual interest rate to a monthly rate by dividing it by 12.
- Convert the loan tenure from years to months for accuracy.