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.