Car Loan EMI Calculator

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Car Loan EMI Calculator

Car Loan EMI

A car loan EMI (Equated Monthly Installment) is the amount of money you need to pay every month to the bank or lender to repay the loan amount taken for buying a car. The EMI consists of both the principal amount and the interest charged by the bank.

To calculate the EMI for a car loan, you can use a car loan EMI calculator. Many banks and financial institutions offer online car loan EMI calculators that allow you to calculate the EMI based on your loan amount, interest rate, and loan tenure.

For example, if you want to borrow a car loan of Rs. 5 lakhs for a tenure of 5 years at an interest rate of 8% per annum, the calculation would be as follows:

Loan amount = Rs. 5 lakhs
Interest rate = 8% per annum
Loan tenure = 5 years or 60 months

Using a car loan EMI calculator, the EMI for this car loan would be Rs. 10,358 per month.

Please note that the actual EMI amount may vary depending on the bank or financial institution and the terms and conditions of the loan.

Car Loan EMI formula

A car loan EMI (Equated Monthly Installment) is the amount of money you need to pay every month to the bank or lender to repay the loan amount taken for buying a car. The EMI consists of both the principal amount and the interest charged by the bank.

To calculate the EMI for a car loan, you can use a car loan EMI calculator. Many banks and financial institutions offer online car loan EMI calculators that allow you to calculate the EMI based on your loan amount, interest rate, and loan tenure.

Here is the formula to calculate car loan EMI:

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

where,

P = Principal or the loan amount
R = Rate of interest per month (annual rate of interest/12)
N = Number of monthly installments or loan tenure in months

For example, if you want to borrow a car loan of Rs. 5 lakhs for a tenure of 5 years at an interest rate of 8% per annum, the calculation would be as follows:

Loan amount (P) = Rs. 5 lakhs
Annual interest rate (R) = 8%
Monthly interest rate (R) = 8%/12 = 0.00667
Loan tenure (N) = 5 years or 60 months

EMI = [5,00,000 x 0.00667 x (1+0.00667)^60] / [(1+0.00667)^60-1]
EMI = Rs. 10,358 per month

Please note that the actual EMI amount may vary depending on the bank or financial institution and the terms and conditions of the loan. It is always advisable to use an online car loan EMI calculator provided by the lender to get an accurate estimate of your EMI.

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