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# Auto Loan EMI Calculator

 Amount (Vehicle Price) Down Payment Annual Interest Rate % Term / Period months
 Monthly Payment Total Interest Payment Total Amount to Pay

## Auto Loan EMI Calculator reflects the actual cost of borrowing for your dream car

You may be thinking about buying your dream car or you just need a transport vehicle for your business, you may turn to banks to finance any automobile you need. This is true for old and new vehicles. If you are not sure if you can afford to buy the automobile of your choice all in cash, auto loans are the way to go.

Borrowing auto loans have become easier with time. The interest rates charged on auto loans are also typically less when compared to personal or other kinds of unsecured loans. This is because of the security as the financed vehicle will serve as collateral so the lenders are secured.

Auto loans can be availed by companies as well as individuals given they meet the conditions defined by the banks. We will discuss the details related to auto loan repayments in this article. Let's start by looking at the auto loan repayment process and factors that affect it the most.

## Auto loan EMI calculation and its defining factors

Though the auto loan EMI calculation is similar to the personal loan EMI calculations, there are some factors that define the auto loan EMI:

• Loan To Value (LTV): This is the percentage that is defined by the lender. LTV is the percentage at which the bank or financial institution finances the vehicle when it is not being financed 100%. For example the LTV on an auto loan is 80% if a car costs a 100k but the financed amount is 80k (100,000 x 80% = 80,000). The rest of the amount is then taken from the borrower as a down payment against the loan.
• Down payment: This is the amount that is paid in advance against the vehicle that is being financed. This amount is subtracted from the loan total cost of the vehicle in order to get the total loan amount.
• Loan amount: This is the base of an auto loan EMI, the bigger the loan amount the higher the EMI. The rate of interest is applied to this amount to get the EMI amount for a particular period.
• Interest rate: This is the percentage of interest that will be applied to the loan amount.
• Loan tenure: This number as well plays a major role in defining the auto loan installment. The auto loan EMI (principal amount + interest) will be spread based on the selected loan tenure. The longer the loan term the smaller the EMI. However, you should always choose the loan shortest possible loan tenure as longer loan tenure will result in higher interest payments. Let's take a look at the calculation method now.

### The auto loan EMI calculation

If you are choosing to finance your car with an auto loan, you must know how much you will have to pay on a monthly basis, but how? Calculating the auto loan EMI could resolve this issue for you. You may apply the following formula in order to find out the EMI.

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

Where:

• P = The total loan amount or total principal.
• R = This is the interest rate per month, if the interest rate per annum is 5%, then the rate of interest will be 5/(12 x 100)].
• N = is the number of monthly installments.

This is the mathematical formula for obtaining the EMI amount manually. There are other options available to do so, such as using spreadsheets and online calculators. Let's see how you can take advantage of the auto loan EMI calculator designed by iCalculator.

## Using the Auto Loan EMI Calculator to determine your monthly payments

In order to calculate your auto loan EMI, you need to enter the following details into the calculator:

• Amount or Vehicle price: This is the total cost of a vehicle that is being financed.
• Down payment: The amount that you will be paying as a down payment against the total cost.
• Interest Rate: Input the interest rate value that is offered by your bank.
• Time/period: Enter the term of the loan in months.

The calculator is capable of performing the calculations just with the click of your mouse. To get accurate results, all you have to do is enter the correct data into the calculator.

You may use the calculator for calculating auto loan EMI for both old and new vehicles, additionally; you may compare the offers from different banks by keeping the results recorded for making comparisons.

Various banks may offer different interest rates and different LTV you can use the results to see the amount of the EMI and down payment and choose the deal that suits you the best.