🛻Car Loan EMI Calculator
CAR Loan EMI Calculator
India is now the world’s fourth-largest market for four-wheelers, with a consistent growth rate of 9.5% year-on-year. Naturally, the demand for a reliable and user-friendly car loan EMI calculator has surged alongside this growth.
The Car Loan EMI Calculator is a simple online tool that helps you calculate the EMI you need to pay for your Car Loan. By providing basic information about your loan, such as the loan amount, tenure, and interest rate, you can quickly calculate your monthly EMI.
How to Use the Car Loan EMI Calculator?
- Choose the amount that you need for your car
- Enter the interest rate offered to you
- Select a convenient loan tenure
- Press the ‘Calculate EMI’ button.
🧮 EMI Calculation Formula Explained
Here, P, R, and N are the key variables. This means the EMI amount will vary each time you adjust any of these three. Let’s understand them in detail:
P refers to the Principal Amount — the original loan amount provided by the bank, on which the interest is calculated.
R stands for the Rate of Interest determined by the bank.
N represents the Number of Years allotted for loan repayment. Since EMIs are paid monthly, the tenure is converted into the number of months.
For Example: If you take a car loan of Rs 10 lakh at an interest rate of 12%, for period of 2 years
the approximate EMI will be:
P = Rs 10,00,000, R = 12 ÷ 12 ÷ 100 = 0.01 (or 1%) , N = 2 years or 24 months. as per the formula
EMI = [1000000 x 0.01 x (1+0.01)^24] / [(1+0.01)^24 -1]
EMI = Rs 47,073.
FAQs
What is a Car Loan EMI Calculator?
A Car Loan EMI (Equated Monthly Instalment) calculator is a tool that helps you calculate the monthly payments you’ll need to make on a car loan. To use it you typically input details such as loan amount, interest rate and loan tenure. The calculator then computes the monthly instalment you’ll need to pay, including both principal and interest.Â
Which one is better, Car Loan EMI Calculator or Excel Calculator?
The Car Loan EMI Calculator is specifically designed to compute Car Loan EMIs within seconds. It is much simpler and more convenient to use compared to an Excel calculator.
Is the car loan calculator the same as home, personal loan calculator?
At a basic level, these calculators function similarly. However, the Car Loan EMI Calculator provides detailed information specifically related to car loans.
How to use the Car Loan EMI Calculator?
Visit the calculator link and input the loan amount, loan duration, and interest rate. Hit the calculate button to find out about the monthly EMIs you need to pay towards your loan.