Car Loan EMI Table: Every Amount and Tenure at 9.5%

This page replaces three separate pages that each worked out one car loan. Everything is here: the EMI on any car loan from ₹3 lakh to ₹20 lakh over 3 to 7 years, the interest each one costs, the income it needs, and the formula behind all of it.

The table: EMI by amount and tenure

Monthly EMI at 9.5% a year, rounded to the rupee.

What each of those loans costs in total

Total interest paid over the full term, at the same 9.5%. The figure in brackets is the interest as a share of the amount borrowed. Stretching a loan from 3 years to 7 more than doubles it.

The formula, written out

Every figure above comes from the standard annuity formula:

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

where P is the principal (the amount the lender pays out, not the price of the car), r is the monthly rate (the annual rate divided by 12 and by 100, so 9.5% a year is 0.007917 a month) and n is the number of monthly instalments, the tenure in years × 12. Total paid is EMI × n; total interest is that minus P.

Worked example

An ₹8 lakh loan at 9.5% over 5 years, computed by this page:

r = 9.5 ÷ 12 ÷ 100 = 0.007917. n = 5 × 12 = 60. EMI = 800000 × 0.007917 × (1.007917)⁶⁰ ÷ ((1.007917)⁶⁰ − 1) = ₹16,801 a month.

Over 60 instalments that is ₹10,08,089 repaid on ₹8 lakh borrowed: ₹2,08,089 of interest. The first instalment carries the most interest: ₹6,333 of the ₹16,801 (38%) goes to the lender and ₹10,468 to your principal. Paying one extra EMI every year closes the same loan in 55 months instead of 60 and saves ₹17,063 of interest.

How the rate changes the EMI

On a 5-year loan, each half-point of rate moves the EMI by a little over 1%. The rate matters less than on a home loan, because the term is short; the tenure you pick matters more.

The income each EMI needs

A car loses value quickly, so the guideline worth planning to is stricter than the one for a home. The 20/4/10 rule (20% down, a loan of no more than 4 years, and total transport costs under 10 to 15% of take-home) puts the EMI alone at no more than about 15% of take-home. A 4-year loan at 9.5% then needs:

Fuel, insurance, servicing and parking come on top of the EMI, which is why the guideline is about total transport cost and not the instalment alone. The car affordability calculator works from your own income and costs.

What prepayment does to each of them

One extra EMI a year, on a 5-year loan at 9.5%, with the lender asked to cut the tenure and not the EMI:

These savings ignore any foreclosure or part-payment charge. Some car-loan lenders levy one, so read that clause in the loan agreement before you plan around prepaying. The general mechanics (cut tenure rather than EMI, and why the early years matter most) are set out once in EMIs in India.

Assumptions behind every number here

A fixed 9.5% for the whole term, compounded monthly, with the first instalment one month after disbursal. Equal instalments throughout. Rounding to the nearest rupee, so a long schedule can differ from a lender's statement by a rupee or two. The 9.5% is an illustrative rate, not a quote: your lender, your credit history and whether the car is new or used set the real one, and the rate table above exists so you can read off the one you were offered.

Excluded, because they are not part of the EMI: the processing fee, insurance or accessories rolled into the loan, and everything that makes up the on-road price beyond the ex-showroom figure (registration, road tax, insurance). The gap between the car's price and the loan is your down payment.

When this is the wrong tool

This table answers "what is the monthly payment" and nothing else. It is the wrong tool if:

Your loan has a balloon or buy-back structure. Some lenders offer a lower EMI with a large final payment. Every figure here assumes equal instalments to the end.

The car is used, or the loan is for a two-wheeler or an EV. Rates and maximum tenures differ, so move the rate and tenure in the table, or run your own numbers in the car loan calculator.

You are deciding between buying and leasing. An EMI is not a comparison; that needs the lease versus buy calculator.

It is a home loan. Tenures are far longer and the tax rules differ: use the home loan EMI table.

Frequently asked questions

What is the EMI on an ₹8 lakh car loan for 5 years?

About ₹16,801 a month at 9.5%, repaying ₹10,08,089 in total, of which ₹2,08,089 is interest.

Is a 7-year car loan a good idea?

It lowers the monthly payment but not the cost. An ₹8 lakh loan at 9.5% costs ₹16,801 a month over 5 years and ₹13,075 over 7, but the 7-year version pays ₹90,226 more in interest. A car also loses value faster than a loan this long is repaid, so the longer tenure is the one most likely to leave you owing more than the car is worth.

How much salary do I need for a ₹10 lakh car loan?

The 4-year EMI is ₹25,123, so about ₹1,67,488 of take-home a month if you keep the EMI to 15%, and more if you already carry other EMIs.

Why does the lender quote a different EMI?

Usually because the rate differs from 9.5%, or because the quote includes a processing fee or insurance added to the loan. Re-run your own rate in the table above.

Run a specific amount, rate and tenure, with the full month-by-month schedule, in the free car loan calculator.

Turn this plan into a running budget

Set the caps from this article as category budgets in Expense Tracker: Income Manager, and see a daily safe-to-spend number that updates as you log. No sign-up, no ads.