Car Loan EMI Calculator Online
A car loan EMI calculator is a tool that allows you to determine your monthly instalment liabilities from a loan before you opt for it.
Nonetheless, you must enter relevant details into this tool before completing the calculations. The 3 pieces of Information that you must provide to the calculator are:
- Borrow the amount how much you want.
- How long do you want your repayment period to last
- The Rate of interest accused by your lender on the borrowed sum.
On providing this Information, this EMI calculator will reveal the amount you would have to pay against your car loan each month during the tenure.
Car Loan EMI Calculator Formula:
You can calculate the EMIs on your car loan using two methods, i.e. by using an online Car Loan EMI Calculator or manually. The process for both had explained below:
Method 1:
By using an online Car Loan EMI Calculator
Go to the lending institution's Car Loan EMI Calculator page or any Fintech portal.
Principal Loan Amount
Rate of Interest
Loan tenure
After entering the Information mentioned above, the monthly EMI you are required to pay will have shown instantly.
Method 2:
By using a manual EMI calculation formula
It is the formulae that you would need to calculate EMIs on your car loan-
EMI = [P x R x (1+R) ^ N] / [(1+ R) ^ N – 1]
EMI: Equated Monthly Payment
P: Principal Loan amount
R: Rate of interest
N: No Of Months
Factors affecting Car Loan EMIs Calculator:
Principal amount:The loan amount you are borrowing is one of the main parameters on which your car loan EMI depends. The more the principal, the higher the EMIs will be.
Tenure:The term chosen for a car loan is another major factor impacting your monthly EMI payments. If you choose a longer tenure, the monthly instalment would be less, and if the assignment is minor, you will have to pay higher EMIs.
Rate of interest: :It is the Rate at which you will have offered a car loan. If the interest rate is higher, the EMI will also increase.
Benefits of Car Loan EMI Calculator:
Simple to use:
Using an online EMI calculator is very easy. Anyone can use this calculator to evaluate their car loan affordability. The result will show instantly.
Give accurate results:
There might be mistakes when you manually calculate the mathematical calculation while finding out the EMIs of your loan, which may lead to choosing the wrong loan offer. But using this calculator, you can do multiple variations with accurate results every time.
Helps you select the best loan offers:
When you input various lender offers on an EMI Calculator, you get an instant idea of your EMI with different lenders. After comparing all the loan offers, you can easily decide your best request.
Free of cost:
It is one of the most significant advantages as the calculator is free of charge. One can use it as many times as possible according to their requirements.
So, before you go and scout for a car loan to buy your dream vehicle, make sure you use this handy financial tool to calculate EMIs on your loan that you need to pay your lender every month until the loan had fully repaid.
FAQ'S
What is the use of a Car EMI calculator?
An EMI Calculator is a utility tool that helps you calculate the amount you repay monthly towards your loan. You can use the EMI calculator to calculate the EMI amount on a car, home, bike, or personal loan. You get an idea of the monthly repayments you make towards these loans.
How is the EMI of a car calculated?
The Equated Monthly Instalment consists of the principal portion of the interest and the loan amount. Therefore, EMI = interest paid on the Car Loan + principal amount.
How is the principle in EMI calculated?
Calculating EMI has a Simple Formula, Which Follows: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]. Here, P is the loan amount or principal, R is the interest rate applicable per annum, and N is the loan tenure.
Are there any tax benefits for a car loan?
No. Car loans don't have any tax benefits.
How can I know the interest amount?
Use a car loan Emi calculator to calculate your emi.
What is the maximum tenure of a car loan?
The entire tenure of the car loan is seven years.