A car loan EMI calculator is a simple tool that helps you figure out your monthly car loan payment. Just enter the loan amount, interest rate, and loan term, and it will estimate how much you'll pay each month (EMI). This way, you can see if the car loan fits your budget before you buy the car.
Monthly EMI: Rs. 1,000,00
A car loan EMI calculator estimates the EMI you will have to pay regularly in the course of repayment of a car loan. All you have to do is enter the principal loan amount, the rate of interest, and the loan duration. With the help of this information; it calculates the EMI using a specific formula.
A car loan calculator is an essential tool that helps potential borrowers make better decisions. It allows the borrower to understand the repayment requirement of the loan they wish to take. Hence, almost all major banks and NBFCs have the car loan EMI calculator on their websites for prospective borrowers to utilize.
Figuring out car loan payments is easy with car loan calculators, but did you know there are tools for car insurance too? Just like a car loan calculator helps you estimate your monthly payment, a car insurance premium calculator gives you an idea of how much your insurance will cost. This is helpful because car insurance, just like car loans, is a big financial decision. By using the calculator, you can get a starting point for the cost and make sure it fits your budget.
Feature |
Car Loan EMI Calculator |
Car Insurance Plan Calculator |
|---|---|---|
Purpose |
Estimates the monthly payment (EMI) for a car loan |
Estimates the cost (premium) of car insurance |
Focuses on |
Loan affordability |
Insurance cost comparison |
Key Inputs |
Loan amount, interest rate, loan term |
Car details (make, model, year), driving history, location (optional: coverage options) |
Outputs |
Monthly EMI payment, total loan cost (optional) |
Estimated premium amount |
Limitations |
Doesn't consider down payment, fees, or taxes |
Doesn't provide details on coverage options, deductibles, or exclusions |
Best Use |
Budgeting for a car loan, comparing loan options |
Getting a starting point for insurance cost, narrowing down options |
Do you know: According to the Motor Vehicles Act of 1988, having a Motor Insurance policy that covers third-party liabilities is mandatory.
Let us understand the importance of using a car loan calculator
1Easy and convenient - The best part about using the car loan EMI calculator is that it is extremely easy to use and quite convenient. The user has to enter only the three variables, and the calculator will do the rest.
2Saves time- Calculating the EMI for your car loan can be a tedious job. But with a car loan EMI calculator, once you enter the variables to compute the EMI, you get the results instantly within a matter of a few seconds.
3Plan your budget- With the help of a car loan EMI calculator, you can efficiently plan your finances and wisely allocate the funds towards your car loan EMI as well as to other important aspects of your life.
4Error-free calculation- Manual calculations can have minute errors that can affect the overall results. Since the calculator is automated, it removes any scope for error even when the variables entered are complex or large. The car loan EMI calculator is programmed to provide reliable and swift results every time without any mistake.
5Transparency- Both the variables of your car loan - principal amount and interest payable - are shown clearly.
6Flexibility- You can experiment with the loan amount, tenure, and interest rates to have a thorough understanding of how these variables affect the EMI so that you can make an informed decision.
7Better planning- With error-free calculation and transparency, this calculator serves as a saviour as it gives clear information and helps you plan your finances effectively.
While a car loan EMI calculator is a very handy tool, here are some key points to consider before using it:
1Simple Estimate: This calculator uses only three variables: principal amount, loan term, and interest rate. The results will show an EMI based on these factors only. However, the actual EMI might differ slightly due to the specific terms and conditions offered by the lender you choose.
2Down Payment Impact: Factor in the effect of a down payment on your budget planning. Many lenders require an upfront down payment, which can significantly impact your finances if not considered beforehand.
3Varying Interest Rates: This calculator allows you to adjust the interest rate to see how it affects your overall EMI cost. However, keep in mind that actual interest rates can vary between lenders, and the actual EMI might differ from the one you calculate.
1Informed assessment: Have a closer look at how the EMI of your car loan works by adjusting the loan amount, interest rate, and the loan tenure. See how these factors dynamically impact the EMI, allowing you to find a loan option that seamlessly integrates into your budget and avoids any potential strain on your pocket.
2Convenient: The car loan EMI calculator only asks for the loan amount, interest rate, and the loan term. With these variables, you’ll get an instant estimate for the EMI regardless of the place you want to use it from.
3Assess your affordability: You can take your time to figure out how a car loan can impact your budget and ascertain how much debt you can afford without putting a burden on your pocket.
4Peace of mind: Having a clear idea of your monthly car loan payment can eliminate surprises in your budget and provide peace of mind. You'll be able to confidently manage your finances knowing exactly how much your car loan will cost each month.
5Financial Transparency: The car loan EMI calculator breaks down your EMI into two key parts: the principal amount (the actual amount you borrow to buy the car) and the interest amount (the amount charged for borrowing that money). This transparency helps you in figuring out the cost of your car loan and make informed financial choices.
The car insurance calculator is not only immensely helpful but is also quite easy to use. It can be accessed on several devices and multiple browsers. The most important prerequisite is a decent internet connection. Let’s go through the procedure, explained in 3 easy steps.
Once you have accessed the site for the car loan calculator, you have to enter the three variables: the principal loan amount, the rate of interest of the loan, and the loan tenure. Do note that, in most cases, the rate of interest can be reduced only as far as the lowest rate of interest offered by the lender.
Once the information has been entered, the car loan EMI calculator immediately computes the EMI. The formula used by the calculator goes like this: [E = P * r * (1 + r)^n ] / [(1 + r)^n - 1] where ‘E’ refers to the EMI, ‘P’ is the principal amount, ‘R’ is the rate of interest, and ‘n’ is the tenure of the loan.
After you have received the results, you can modify the variables as per your requirement. With most sites, you do not have to reload the page. You can enter new variables on the same page and the car loan EMI calculator will keep coming up with new results every time.
Manual -
The car loan EMI calculator uses a simple equation to calculate your car loan EMI:
[E = P * r * (1 + r)^n ] / [(1 + r)^n - 1].
E – EMI amount
P – Principal Amount
R – Rate of Interest (Per Month)
N: Number of monthly instalments/loan tenure in months
Car Loan EMI Calculator -
The car loan EMI calculator will calculate and display the following details automatically:
The EMI amount- showing the monthly instalments
Total interest- overall interest amount
Total amount- the final total amount including the EMI amount & the total interest.
Based on these calculations, you can modify the variables to best suit your needs and take an informed decision.
Both car loan insurance and car insurance calculators serve important purposes, but they address different aspects of car ownership. Here is a breakdown to help you understand the key distinctions:
Feature |
Car Loan Insurance |
Car Insurance |
|---|---|---|
Meaning |
A car loan insurance safeguards the interest of lender in case you can't repay the car loan due to any unforeseen events like unemployment or sudden death |
A car insurance gives you financial protection in case of any damage or loss occurring to your car due to natural calamity or accidents |
Purpose |
It pays the lender the remaining balance on your car loan if you default |
It covers the cost of repairs to your car or compensates you for the car's value in case of an accident, theft, or other covered events |
Cost |
The cost of car loan insurance depends on the coverage, and is usually lower than car insurance |
The cost varies depending on your car’s make & model, driving record, location, and desired coverage |
Coverage |
It provides cover for the remaining balance of your car loan in case of sudden demise, disability, or unemployment |
This insurance plan covers a wide range of perils, including collision, medical payments, and natural calamities |
Mandatory |
A car loan insurance is not compulsory by law but it s advisable to have one to safeguard yourself from any unforeseen events |
As per the Motor Vehicles Act, 1988, a car owner who wishes to drive their car on Indian roads needs to have a third-party car insurance policy. However, having an additional policy for your car is optional. |
This is one of the prime factors. A higher loan amount translates to a higher EMI as you're borrowing more money that needs to be repaid with interest.
The interest rate charged by the lender on the loan amount significantly impacts the EMI. A lower interest rate results in a lower EMI, saving you money in the long run but this interest rate may vary from lender to lender.
The period (in months or years) over which you repay the loan affects the EMI. A longer tenure spreads the loan amount, leading to a lower EMI but ultimately increase the amount you pay as interest.
The upfront amount you pay towards the car reduces the loan amount. This would help you in lowering the EMI as you're borrowing less and paying interest on a smaller principal amount.
Having a strong credit score shows lenders you're a reliable borrower. This can lead to them offering you a lower interest rate on your car loan. The lower interest rate means you'll pay less overall and have a smaller monthly payment (EMI).
Whether your car is new or second-hand, you may have varying interest rates or eligibility criteria. For example, used car loans often have higher interest rates than new car loans, leading to a higher EMI.
1What Is The Formula Required To Estimate The EMI?
The formula required to estimate the EMI is [E = P * r * (1 + r)^n ] / [(1 + r)^n - 1]].
In this formula, the E is the EMI, and ‘P’ is the principal amount that you are planning to borrow, the ‘r’ is the rate of interest and the ‘n’ is the tenure of the car loan.
Do not worry! You do not have to remember or enter this formula anywhere. The car loan EMI calculator is programmed to use this formula for estimating the EMI. Your contribution in the process simply involves entering the three variables.
2How Many Times Can I Use The Car Loan EMI Calculator Free?
You can use the car loan calculator as many times as you want without any charges. All you require is a good internet connection and a device.
3What Documents Are Needed To Use The Car Loan EMI Calculator?
The car loan EMI calculator does not require any documents to be uploaded. All it requires is basic information about the loan tenure, the rate of interest, and the principal amount.
4Is The Car Insurance Plan Calculator The Same As The Car Loan EMI Calculator?
Both the calculators serve to provide accurate information to the user and help them make wiser financial decisions. A car insurance plan calculator helps you get an estimate of the premium for a motor car insurance plan. On the other hand, a car loan EMI calculator helps you get an approximate idea of the EMI you will be paying for a car loan.
5Is Buying A Car Insurance Policy Mandatory For Car Loan Approval?
As per the Motor Vehicles Act, 1988, any car owner who wishes to drive their car on Indian roads needs to have a third-party car insurance policy. Aside from complying with the law, if you are looking for additional protection for your car, you can also purchase a comprehensive car insurance policy. This kind of policy covers the cost of damages that occur due to natural calamities, fire, theft, depreciation, and much more. Comprehensive car insurance plans also allow the benefit of add-ons.
Therefore, if you are buying a car, regardless of whether you are applying for a loan or not, you have to mandatorily buy a car insurance plan.
6Can I take Car Loan for a Used Car?
Yes, there are many lenders in the market who are willing to finance the purchase of used cars. The main factor of influence here is the age of the car. A car loan EMI calculator can be used when planning for loans for used cars as well. It is mandatory to have a car insurance policy for used cars too.
7Does a car loan require collateral?
When you buy a car loan, the car itself is considered collateral. In some rare cases, you can provide another asset as collateral. If you are unable to repay the loan on time, the lender can confiscate the car/or the asset. It is also to be noted that the rate of interest offered to you by the lender is dependent on the collateral. Expensive collateral could mean lower EMIs.
8How much is the difference between the EMI estimated by the car loan calculator and the actual EMI quoted by the lender?
The EMI estimated by the car loan calculator is based on three variables: the loan amount, the rate of interest, and the loan tenure. The EMI quoted by the lender is dependent on several other factors such as your credit history, whether you live in a rented house or an owned house, the down payment you make, your occupation, and so on.
9Will my car loan EMI remain fixed or it can change after I take the loan?
Your car loan EMI will be fixed at the beginning of your loan tenure. This amount remains constant throughout the loan period, making it easier for you to manage and plan your budget.
