Loans
The EMI on a car from the on-road price after your down payment, the interest, the total you pay for the car, and a 20/4/10 check against your take-home pay.
Finfod Research DeskUpdated 1 Nov 2026How we check
EMI₹16,801
The price to drive away, including registration and insurance, not the ex-showroom price alone.
The 20/4/10 check looks for at least 20%.
9.5% is a starting point, not a lender's offer. Use the rate on the sanction letter.
A new-car loan often runs up to 7 years. A used-car loan is often shorter. Those are typical, not a rule. The 20/4/10 check stops at 4 years.
Optional. Leave this at zero to skip the 10% check. The check looks for an EMI within 10% of this pay.
Outside the 20/4/10 check
You borrow ₹8,00,000 after a down payment of ₹2,00,000. Interest over 60 months is ₹2,08,097. The car costs ₹12,08,097 once the down payment and the loan are added.
On the reducing balance
Down payment plus every instalment
EMI of ₹10,000, 4 years, 20% down
20.0% down
The link keeps the numbers on this page.
You borrow the on-road price minus the down payment. Interest each month is the opening balance times the yearly rate divided by 12. The EMI is rounded to the nearest rupee. The last instalment clears whatever principal is left. This is the same reducing-balance engine as the EMI calculator.
The 9.5% rate is a starting point. Use the rate on your sanction letter. It is not a bank’s offer. This page does not add a processing fee or loan insurance.
The on-road price is what you pay to drive the car away. It includes tax, insurance, and registration. The ex-showroom price is lower, and a loan on that figure understates the amount you need. Type the on-road price from the quotation. The down payment can be a percent of that price or a rupee amount. The loan is the rest.
20/4/10 is a planning check, not a regulation. It asks for at least 20% down, a tenure of 4 years or less, and an EMI within 10% of monthly take-home pay.
An on-road price of ₹10,00,000, with 20% down, means you pay ₹2,00,000 now and borrow ₹8,00,000. At 9.5% for 5 years, the EMI is ₹16,801. Interest is ₹2,08,097. You repay ₹10,08,097. The car costs ₹12,08,097 once the down payment is included.
The 20% down payment passes. Five years fails the 4-year check. At a take-home pay of ₹1,00,000, the EMI is 16.8% of pay, so the 10% check fails too. The on-road price that fits all three parts, at this pay and this rate, is ₹4,97,549. That uses a 4-year loan and a 20% down payment.
The same ₹8,00,000 at 9.5% for 7 years has an EMI of ₹13,075 and interest of ₹2,98,322. That is ₹90,225 more interest than the 5-year loan, for a lower monthly payment. A new-car loan often runs up to 7 years. A used-car loan is often shorter. Those are typical tenures, not a cap. The slider stops at 84 months.
Take-home pay comes from the in-hand salary calculator. An unsecured loan is the personal loan EMI calculator. Fuel for the car you are pricing is on the petrol and diesel page. More loan tools are on loans and home.
This is an estimate for learning, not a sanction letter and not advice. Read the disclaimer.
The instalment is still a reducing-balance EMI on the amount you borrow. The rate the dealer quotes is a rate you type here. Compare the EMI and the total you pay, including the down payment, before you treat a showroom offer as cheaper.
This page does not add a prepayment charge or a part payment. Closing early saves the interest on the later months, and a charge in the sanction letter comes off that saving. The EMI calculator states the same limit.
A 0% rate makes the EMI the amount borrowed, divided by the months. The cost is often sitting in the on-road price instead of in the interest. Compare the price you pay with the cash price, not only the rate on the poster.
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