EMI payment plans have transformed aspirational purchases into practical ones. Now, anyone can take out a four-wheeler on loan and pay it back in small installments instead of all at once! However, the amount of car EMI and loan options out there can be confusing. Online tools like a car loan EMI calculator can help streamline the process for you.
Vehicle loans are calculated based on multiple factors. Using a car or two wheeler loan EMI calculator can help you know the EMI amount in advance so you can plan your budget accordingly. In this blog, we’ll cover the benefits of using an online loan EMI calculator as well as the best EMI car buying calculator tools you can use.
Benefits of Using a Car Loan EMI Calculator
A car loan EMI calculator is a free online tool that can help you calculate the estimated EMI amount for a car loan. Using online tools like a new or a used car loan EMI calculator has several benefits, such as:
1. Ease of Use
A car loan calculator is easy and convenient to use. You just need to input basic loan details like the loan amount, interest rate, tenure, etc. from anywhere in the world and the calculator will give you the EMI amount.
2. Saves Time and Increases Accuracy
Online tools like car loan EMI and car insurance calculator are quick and never make mistakes. A car finance calculator helps you avoid the complex and time-consuming process of doing it yourself.
Using a car or motorcycle loan EMI calculator reduces the risk of calculation errors. Unlike manual calculations, you can adjust the input values, try out multiple options, and get accurate, mathematically correct results each time.
3. Simplifies Financial Planning
A car EMI loan calculator can give you an EMI estimate even before you apply for the loan. It simplifies financial planning as once you know the EMI amount, you can adjust the tenure to align with your budget.
4. Calculate Ownerships Costs
An EMI car loan estimator gives you clarity on the monthly EMI payments by giving you a detailed breakdown of the payable amount and calculating the interest, processing fees, and other variables.
Calculator tools eliminate any uncertainty around the loan and EMI process. You can also use a car mileage calculator to factor in running costs along with the cost of ownership.
5. Compare Loans
You can use a car loan EMI calculator to compare loan plans from different lenders and identify the best deal for yourself. Using a car loan interest rate calculator can also help you compare different loan options more thoroughly.
6. Saves Money
An auto loan EMI calculator can help you select the right loan provider with the most cost-effective EMI repayment plan, which results in increased savings.
What Do You Need To Use A Car Loan EMI Calculator?
You’ll need some basic information about your loan to calculate EMI in an online car loan calculator. That includes:
1. Principal Loan Amount
This is the amount of money you want to borrow.
2. Interest Rate
The interest rate is the amount charged on top of the money you borrow.
3. Loan Tenure
The loan tenure is the duration for which you pay back the borrowed money. You may choose a long tenure with small EMIs or a short tenure with more EMIs.
Once you have these amounts, simply input them in a car loan EMI calculator and click ‘calculate’. The monthly car payment calculator will provide you with the estimated EMI amount as well as the amortization schedule.
The amortization schedule is a table that details periodic loan payments over the loan duration and breaks them down into the principal amount and the interest charged.
An EMI calculator provides you with a detailed amortization schedule, which helps you understand the breakdown of your car loan into fixed installments and what your loan balance will be after factoring in EMI interest.
How Is Car Loan EMI Calculated?
The formula that a car loan payment calculator uses to calculate EMI is:
EMI Amount = P x R x (1+R)^N / [(1+R)^N-1]
Where,
P is the principal amount.
R is the rate of interest set by the provider.
N is the number of years or months you are given to pay back the loan.
Additional Tips
- Make sure that you are using the right vehicle loan EMI calculator for the right purpose. Do not use a two wheeler loan EMI calculator to calculate your car loan EMI amounts, and vice versa.
- The EMI amount changes every time one of the three variables P, R, or N is changed. Thus, if loan A has a tenure period (N) of two years and loan B has one of three years, the EMI amount will be different even if other factors remain the same.
- You can also use a car or bike mileage calculator to calculate your new vehicle’s running costs.
- Even the best car loan calculator will only provide an estimated amount. Some factors that may alter your EMI calculation process include: Your age, income, and employment history
- Your credit score
- Whether the car is new or used
- The value of the car
Frequently Asked Questions
What is a car loan EMI calculator?
A car loan EMI calculator is a useful tool that can help you calculate the EMIs you could pay on a car loan by factoring in the principal amount, tenure, and interest rate on the loan.
How much time does it take to use a car loan EMI calculator?
It only takes a few minutes to use a car loan EMI calculator.
What details do you need to use a car loan EMI calculator?
You just need information like the total loan amount, tenure, and rate of interest to use a loan EMI calculator.
What is a zero down payment car loan?
A down payment is a certain amount that you pay to the dealer before the bank releases your car loan. Some banks offer to provide the full amount of the car’s price, which is called a zero down payment car loan.
Car Loan EMI Calculator
₹500000
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36 months
