India is now the world's fourth-largest market for four-wheelers. The annual growth rate has been consistent at 9.5%. Unsurprisingly, the demand for a dependable, straightforward car loan EMI calculator has surged.
While the Internet is with calculators for calculating car loan EMIs, the simplicity sets it apart. Calculator.ai provides the most excellent and most user-friendly EMI calculator, allowing you to decide how much cash you need to buy your dream automobile, how much your EMIs would be, and other facts.
How to Use a Car Loan EMI Calculator
Because of the multiple car loans accessible from different lenders, everyone can now afford their ideal car. Gone are the days when getting a new vehicle required saving significant money at a young age. With a respectable salary and credit score, one can obtain a pre-approved auto loan, subject to the loan's maximum term and loan amount. Regardless of the type of vehicle you intend to acquire, a car loan is a significant sum you must repay over the tenor, along with interest. It is when an auto EMI calculator comes in useful.
Saves your essential time: The primary goal of an EMI calculator for car loans in India is to save time. The Car Loan EMI Calculator uses a defined algorithm to calculate your EMI details. It provides immediate results upon entering the necessary information.
Consistently accurate: Unlike traditional computations, internet calculators never produce errors.
Helps you plan your budget: Understanding your monthly EMIs allows you to plan your future finance alternatives better. Buying a fancy car requires a more significant loan amount. To repay it, you'll need a lengthier term. A vehicle loan calculator in India determines all of these parameters.
Breaks down the amount you must pay: An auto EMI calculator breaks down the total payment amount based on loan amount, interest, and processing costs.
How to Calculate Car Loan EMI Amount?
Calculator.ai follows a standardised formula:
E= P. R. (1+R)^n/[(1+R)^n -1]
The various components of the formula are as follows –
P - Determines the principal amount
R The rate of interest payable every month
N The total tenure in months
E Total EMI Payable each
As an example, if you borrow Rs 10 lakh from a financial institution (P) at a 10% interest rate (R) for a total tenure (N) of 7 years (84 months), your EMI will be Rs 16,602. The amount payable after the term is Rs. 16,602 x 84, or Rs. 13,94,568. The interest amount payable is Rs 3,94,568.
Advantages of using Online EMI calculator for Car Loans
Online EMI calculators for car loans are beneficial because they:
- Save Time: Instantly calculate your EMI.
- Aid in Budgeting: Help plan your finances better.
- Ensure Accuracy: Provide precise calculations.
- Allow Comparisons: Enable EMI comparisons for different loan parameters.
- Provide Detailed Breakup: Show a breakup of the total payable amount.
- Are Free and User-Friendly: They’re typically free and easy to use.