How to use Car Loan EMI Calculator
Using a Car loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount. Follow these steps to use a Car loan EMI calculator effectively:
- Enter loan amount, interest rate, tenure.
- Click Calculate.
- View EMI, total interest, repayment.
- Adjust tenure if needed.
- Consider extra costs.
- Check budget compatibility.
- Confirm with the lender before finalizing.
How is Car Loan EMI Calculated?
Car Loan EMI (Equated Monthly Installment) is calculated using the following Compound Interest formula:
EMI = [P * r * (1 + r)n] / [(1 + r)n - 1]
Where:
- EMI = Equated Monthly Installment
- P = Loan principal amount
- r = Monthly interest rate (Annual interest rate divided by 12, expressed as a decimal)
- n = Loan tenure in months
