Calculate the EMI to be paid on the loan you took to purchase a car through the Pocketful Car Loan EMI Calculator.
Loan Amount
Monthly EMI
₹0
Principal Amount
₹10,00,000
Total Interest
₹0
Total Amount
₹0
If you want a loan of ₹10,00,000 at an interest rate of 6.5 %, for a tenure of 5 Years, then you need to pay an EMI of ₹0/month. The Total Interest to be paid is ₹0 and the Total Amount to be repaid is ₹0 (0.00 Lakh).
A car loan EMI calculator is a financial tool for calculating the monthly EMI on a loan to purchase a vehicle. It calculates the EMI based on various inputs such as loan amount, the interest rate at which the loan is taken and the duration of the loan. Combining all these factors using the car loan EMI calculator formula gives you a clear picture of how much amount you need to pay each month.
To use the Pocketful’s Car Loan EMI calculator, one needs to enter the following inputs:
Loan Amount
Rate of Interest
Loan Tenure
The Car Loan EMI calculator gives output in the form of
Monthly EMI
Principal Amount
Total Interest
Total Amount (Principal Amount + Interest)
This calculator helps you calculate the Monthly EMI of a loan taken to purchase a Car.
The car loan calculator helps an individual make informed decisions while planning to purchase a car in the following ways:
A car loan EMI calculator helps you calculate the monthly EMI and can help you plan your monthly budget effectively.
Using a car loan EMI calculator, one can experiment with different interest rates and other inputs to check how they affect the EMI amount.
Through a car loan EMI calculator, one can check the impact on the EMI for different loan tenures.
One can calculate the total interest paid in addition to the principal amount of the loan and then calculate the actual cost of financing your car.
A car loan calculator helps an individual calculate the car’s financing cost. Here is an explanation of how it works:
The first step in calculating the car loan EMI is to input data such as loan amount, tenure of loan, and interest rate at which the loan is taken.
The formula will be applied to calculate the EMI of the car based on the input provided earlier.
Once the formula is applied successfully, you will get the result on the screen, which shows the monthly EMI, along with the total interest amount and total amount to be paid.
You can easily calculate the EMI of your car loan through the Car Loan EMI calculator offered on the Pocketful website; the steps to use the same are as follows:
To calculate the EMI of your car loan, the first step is to visit Pocketful’s website.
Then, you need to scroll to the bottom of the home page; there, you will find a section named Tools; click on it.
Then, the financial tools page will appear, where you will find a tab named Financial Calculators; click on it.
Then you see an option named Car Loan EMI Calculator; click on it.
Enter the details such as Loan Amount, Rate of Interest, and Loan Tenure.
Once you enter the details of your loan, the calculator instantly calculates the monthly EMI to be paid, the total interest, and the total amount.
Formula to Calculate Car Loan EMI
The formula to calculate the EMI of the car loan is:
| EMI | Equated Monthly Installment |
| P | Principal Amount of Loan |
| R | Interest Rate of Loan |
| N | Loan Tenure in Months or Number of Monthly Installments |
Mr. A decided to purchase a car worth ₹10,00,000, and he approached a bank that offered him a loan of the same amount at an annual interest rate of 6.5% for a tenure of 5 years.
Now, let’s calculate the monthly EMI that Mr A needs to pay.
In the case of Mr A, the following are the inputs
Principal Amount of Loan: ₹10,00,000
Interest Rate of Loan: 6.5% P.A.
Loan Tenure: 5 Years
Converting the annual interest rate of the loan into a monthly interest rate: 6.5%/12 = 0.00541
Converting the Yearly Loan Tenure into months: 5 years * 12 = 60 months
Using the formula of the Car Loan EMI Calculator and putting the values in it:
EMI = [ P * R * ( 1 + R ) ^ N ] / [ ( 1 + R ) ^ N - 1 ]
10,00,000 * 0.00541 * (1 + 0.00541) ^ 60 / (1 + 0.00541) ^ 60 - 1
Your Monthly EMI will come to around ₹19,566 per month.
The amount of interest will be calculated as follows:
Monthly EMI * Tenure in Months - Principal Amount
= 19,566 * 60 - 10,00,000
Hence, the amount of total interest which you need to pay will be ₹1,73,969
And the Total Amount Payable = Total Interest + Principal Amount
= ₹1,73,969 + ₹10,00,000
= ₹11,73,969
Therefore, Mr A has to pay a monthly EMI of ₹19,566 for 60 months, which amounts to ₹1,73,969 in total interest on the loan and the principal amount of ₹10,00,000
The major benefits of using the car loan EMI calculator are as follows:
One can easily compare the EMI offered by different banks by adjusting the interest rate, tenure, and loan amount, enabling them to choose the most cost-efficient option.
One can easily save time and effort using the EMI calculator available online.
An individual can check the estimated EMI amount before taking a loan, which helps them plan their expenses according to the budget.
Having an estimated EMI amount of the loan by your side helps you negotiate with the banks or financial institutions.
On a concluding note, a car loan EMI calculator is a tool for a person who is planning to finance a car. It helps you calculate the monthly EMI amount to be paid, and using this calculator, you can change the tenure, amount of loan, and rate of interest. However, it is advisable to conduct proper research and compare the rates of interest offered by banks and financial institutions before taking any car loan.
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