Auto Loan & Car EMI Calculator
Calculate your monthly car loan payment, total interest payable, and required down payment for new or pre-owned vehicle purchases.
Sensitivity Analysis
Evaluate how variations in key operational drivers impact Monthly Vehicle Payment.
| Sensitivity Case | Assumption Shift | Driver Value | Monthly Vehicle Payment | Impact vs Base |
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Formula & Methodology
EMI = (Principal * r * (1 + r)^n) / ((1 + r)^n - 1)Vehicle PriceTotal purchase price of vehicle.
Down PaymentInitial payment made from savings.
Interest Rate (%)Annualized auto loan rate.
TenureDuration of car loan (typically 3 to 7 years).
Practical Worked Example
A buyer purchases an Rs 12,00,000 SUV with an Rs 2,00,000 down payment and takes an Rs 10,00,000 loan at 9.25% for 5 years.
Interpretation & Industry Benchmarks
Automobiles are depreciating assets; keeping loan tenures under 4-5 years prevents owing more on the car than its market resale value.
20% down payment, 4-year max tenure, monthly auto payment under 10% of monthly income.
Industry Nuance: New cars lose approximately 15%–20% of their value in the first year of ownership.
Analytical Limitations
- Does not include annual vehicle insurance, fuel costs, or periodic maintenance.
Frequently Asked Questions
What is the 20/4/10 rule for buying a car?
Put at least 20% down, finance for no more than 4 years, and ensure total transportation costs (loan, insurance, fuel) stay below 10% of gross income.