About Car Loan EMI Calculator
A car loan EMI (Equated Monthly Installment) calculator is a tool used to estimate the monthly payments required to repay a car loan.
This calculator is commonly used by individuals to estimate the affordability of a car loan and plan their finances accordingly.
The car loan EMI calculator typically requires inputs such as the loan amount, the interest rate, and the loan term. The calculator then uses this information to estimate the monthly payments required to repay the loan, including both the principal and interest components.
Car Loan EMI Calculation
Formula for Car Loan EMI Calculation:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
E: Equivalent Monthly Installment,
P: Principal or total loan amount,
r: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
n: Number of monthly instalments or loan tenure in months.
*This formula excludes the car loan processing fee charged by the bank.