What is a car loan EMI calculator?
As the Indian middle class moves towards a more modern lifestyle, the demand for fourwheelers has significantly increased along with a proportional rise in the demand for car loans. The option to get a car loan is a relief for people who don’t have enough monetary resources at their disposal or do not wish to invest such a large amount at once. In such a situation, the Car loan EMI calculator helps you in deciding the suitable car loan amount and for managing your monthly finances accordingly. It is a hasslefree tool which assists you in planning your EMIs in advance. Any applicant can use this tool for free as it is available on the official websites of banks, third party loan comparing companies and other financial institutes. You just need to enter the details like interest rate, principle amount, and loan tenure. It will calculate youramortization schedule and your monthly EMI instantly.
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A comprehensive understanding of EMI
EMI or the Equated Monthly Installment, at the basic level, refers to the fixed amount that you would be entitled to repay monthly to the car loan provider until the car loan matures. EMI is a part of every loan, in this case the car loan, is computedby principal amount and arate of interest. In this scenario, car loan EMI is the most important element in car loan repayment since it is the EMI that a borrower would be liable to pay, for a short  to mediumterm, depending on the choice of tenure. A lower EMI gives more lucrative schemes to a borrower. But at the same time, a higher EMI for a shorter tenure might be more sensible. What is evident by now is that the preference for EMI is subjective. Whatever the case may be the evaluation of monthly car loan EMI using the car loan EMI calculator is indispensable. Since the crucial decision of opting for a particular car loan scheme depends largely on the EMI, the EMIcalculator has become a necessity in order to apply for car loan.
The EMI calculator tool

We have designed a userfriendly car loan EMI calculator to help you compute your monthly car loan EMI. You can explore Paisabazaar.com for the EMI calculator.

This simple EMI calculator has been equipped accordingly, to provide you with the current evaluated EMIs as well as the potential EMIs.

The method of calculating EMI is as follows:
Where,
E is the EMI payable on the car loan amount
P is the Car loan Principal Amount
r is the interest rate value computed on monthly basis
n is the loan tenure in the form of months

For the EMI value, you just need to enter details regarding the loan, the rate of interest and repayment. You can also enter the processing fee, and then your work is done. You would be able to find the amount you need to pay as your monthly instalment.

Through the car loan EMI calculator, you can also notice the impact prepayment would have on your EMI.

The schedule of your car loan amortization and of repayment can also be found with the help of the EMI calculator.

By calculating the prospective car loan EMI with different tenures and rates of interest, you can assess distinct schemes for their profitability. After a clear analysis, you can choose the car loan offer among various car loan offers that meet your requirements at the lowest possible expenses.

EMI calculator can also aid you comprehending and controlling your monthly budget which would further help in making your EMIs affordable.
Determinants

Principal amount  The amount of loan that you are seeking is the main parameter due to which the car loan EMI value fluctuates drastically. The more the principal, the higher the EMI.

Tenure  The term chosen for car loan amortization is another major factor that can impact the monthly car loan EMI value. If you choose a longer tenure, the monthly instalment would be reduced. However, it must be noted that with a rise in the loan period, the amount to be repaid as interest would increase. Thus, a balanced scheme must be chosen, according to one’s requirements.

Rate of interest  As your EMIs are calculated on the basis of interest rate, this factor must be understood fully and selected appropriately. Banks and other financial institutions offer distinct interest rates to different individuals. Therefore, you should use the car loan EMI calculator to figure out the different monthly instalments of your loan based on your specific interest rate. As the rate of interest rises, the EMI payable would rise too. Thus, it is very important to choose the most appropriate interest rate among available car loan eligibility options which would be more profitable to you in the long run. The interest rate can also be understood in terms of their rigidity. The EMI may vary for fixed interest rates and flexible/floating interest rates.

Foreclosure charges or prepayment charges can also bring significant variations in the car loan EMI.

It has been mentioned before; the EMI calculator gives you an opportunity to calculate your monthly instalments that you would have to repay after the disbursal of car loan. It would help you assess which scheme matches your affordability.

The EMI calculator also provides you with a comprehensive view of your loan repayment. With the help of iconographics such as a pie chart or a table, the EMI calculator represents the proportion of the amounts of interest rate, principal and the processing fee, if any, of the total repayment value.

The monthly and annual amortization tables, which have been explained below, can also be viewed.

The calculator also allows you to view the various segments of the repayment value, individually and helps in determining your car loan eligibility. It presents a break of the total payable amount into the loan amount, total interest amount payable and the processing fee.
Key features

Quick results  Once you have entered the details, the calculator provides the computed EMI value immediately. Multiple results can be obtained for free in case you want to calculate EMIs for multiple car loan tenures and different car loan interest rate. Thus, without wasting any time, you can receive the data with ease. It won’t be incorrect to say that you are just a click away from the EMI value.

Accuracy  Since the car loan EMI calculator has eliminated the possibility of any human error, the exact value can be computed without any errors and hence, is completely reliable. The results may vary based

Repetition  The EMI calculator puts no restriction on the number of inputs that you are entitled to. You can calculate the EMI with as many variations as you want.

Comparative data  Since you can use the calculator multiple times with variations in the amounts, the task of comparative analysis of the different schemes becomes easy and handy.

Prepayment evaluation  The car loan EMI calculator toolalso allows you to understand the influence of prepayment on your car loan EMI. You just need to provide the input for the frequency and the amount of prepayment along with the prepayment charges. The EMI calculator would provide you with the EMI instantly.

Car loan interest charges  It is already evident by now that the interest rate on car loan is one of the prime factors of the EMI. The interest rate looks moderate as a percentage for most of the schemes. However, once you calculate the total interest rate charges, the value turns out to be huge. For this clarity, particularly for the firsttime clients, the calculator depicts the entire amount to be paid as interest rate charges.
For a better understanding, consider the following example:
A bank is charging the interest rate of 10% per annum on the principal amount of Rs 10 lakhs. The tenure is 84 months. In this case, the total amount to be repaid as interest turns out to be close to Rs 4 lakhs. At the first sight, 10% per annum doesn’t seem to be as huge, but the computed value of approximately 4 Lakh for a principal of 10 Lakh turns out to be huge.
While this seems to be obvious to a few, for the rest who are not aware of such matters, the EMI calculator is a major relief.
Amortization details through the Car Loan EMI calculator

Starting balance  This refers to the starting balance of a period which the borrower needs to pay back to the car loan providerin the initial phase of the tenure.

Ending balance  Closing balance is the amount that you need to repay to the car loan provider at the end of the tenure when the car loan maturity is reached.

Interest paid  This value corresponds to the total monthly amount of the EMI that is paid as interest to the bank. Successive months will witness a reduction in this amount.

Principal paid  This value is the amount of the EMI that is repaid to the car loan provider as a part of the principal.
The annual table provides details for the total amount, EMI, total interest, monthly interest paid, flat interest rate and other such variables can be viewed.
Finding an EMI calculator
Paisabazaar.com provides you with a very easy to use and completely reliable car loan EMI calculator. This userfriendly EMI calculator tool has been provided on the website on the homepage itself. You can simply click on the link with the tag ‘EMI calculator’. Next, you can fill in the relevant details and then, the values would be provided instantly.
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