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Car Loan EMI: How Is It Calculated?

mahindra-finance-author

by Mahindra Finance

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October 5, 2023

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1 mins read

To calculate your Car Loan EMI manually, you can use this formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

  • P represents the loan amount.
  • R is the monthly interest rate (annual interest rate divided by 12).
  • N denotes the loan tenure in months.

For instance, if you borrow ₹10 lakhs for a car with a 5-year tenure and a 10% annual interest rate, your monthly EMI will be ₹16,602. While manual calculations are possible, they can be time-consuming. Instead, consider using an online Car Loan EMI calculator for quick and accurate results.

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