₹8 lakh at 9% for 5 years, on the reducing balance.
Car Loan EMI Calculator
Enter the loan, the rate and the tenure. The calculator works the EMI on the reducing balance, the way banks charge it, and shows the interest year by year. Below it: the same loan at a flat rate, what SBI charges, and the questions to ask before you sign.
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Monthly EMI
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Year by year
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Car loan EMI formula, worked
The same formula the calculator above runs, on its starting figures.
Over the 5 years.
₹3,60,000 of interest: a flat 9% costs as much as 15.71% on the reducing balance.
What moves your car loan EMI
- The rate
SBI’s car loans run from 8.55% to 9.50% by credit score, fixed for the life of the loan.
In detail
SBI’s car loan rate card, updated on 15 October 2026, runs from 8.55% for a score of 800 or more to 9.50% at the low end, and the rate stays fixed for the whole loan. A dealer’s finance offer may be quoted as a flat rate, which is far dearer than it looks. - The tenure
Up to 7 years at SBI.
In detail
SBI lends for up to 7 years on a new car. A longer tenure lowers the EMI and raises the total interest. - The down payment
SBI can finance up to the full on-road price.
In detail
SBI’s new car loan scheme can cover up to 100% of the on-road price, subject to your income: a salaried borrower can get up to 48 times net monthly income. Every rupee you pay down saves interest on it for the whole tenure. - Flat rates and no-cost EMI
Ask for the reducing-balance rate before comparing offers.
In detail
A flat rate charges interest on the full loan for the whole tenure, so a flat 9% over 5 years equals 15.71% on the reducing balance. A “no-cost EMI” usually hides the interest in a lost discount. The flat rate EMI calculator converts any flat rate, and the festive car loan guide works through a no-cost offer.
Car loan EMI: the questions people ask
How is car loan EMI calculated?
On the reducing balance, as banks charge it: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the annual rate divided by 12 and by 100 and n the months. ₹8 lakh at 9% for 5 years is ₹16,607 a month, with ₹1,96,401 of interest in all.
Is this car loan EMI calculator free?
Yes. It is a free car loan EMI calculator: no sign-up, and the figures you type stay in your browser. It gives the EMI, the total interest and the year-by-year schedule, and you can share the result as a link or a PDF.
Is a flat interest rate on a car loan cheaper?
No. A flat rate is charged on the whole loan for the whole tenure, even as you repay it. A flat 9% over 5 years makes the EMI ₹19,333 on ₹8 lakh, the same as 15.71% on a reducing balance. Ask the dealer or lender for the reducing-balance rate before you compare.
What are SBI’s car loan interest rates?
SBI’s rate card, updated on 15 October 2026, runs from 8.55% to 9.50% a year by credit score, fixed for the life of the loan. Your bank’s rate may differ; type it into the calculator.
What is the longest car loan tenure?
SBI lends for up to 7 years on a new car. Five years is common; a longer loan lowers the EMI but raises the interest.
Can I prepay a car loan without a penalty?
The RBI’s bar on prepayment penalties covers floating-rate loans to individuals. SBI’s car loans are at a fixed rate, so check the foreclosure charge in your sanction letter before you prepay.
Does a car loan save income tax?
Not for a car you use privately: there is no deduction for its loan. If the car is used in your business or profession, the interest and depreciation are business expenses, in proportion to that use.
See also the flat rate EMI calculator for a dealer’s flat-rate offer, the loan eligibility calculator, the festive car loan and no-cost EMI guide, or all calculators.
Quoting this calculator?
You are welcome to use these figures in an article, a forum answer or a client note. A link back is all I ask — here it is, ready to paste.