How this calculator works
The monthly rate is the nominal annual rate divided by 12. Equal payments are due at each month end and interest is charged on the remaining balance. Enter a tenure containing a whole number of months. The table keeps full precision internally; actual lenders may round each payment and adjust the final instalment. The financed vehicle amount includes price, supplied sales tax and financed fees, less down payment and net trade-in equity.
Formula
i = annual rate/12. EMI = P x i/[1 - (1 + i)^(-months)]. At zero interest, EMI = P/months. Interest = EMI x months - P.
Worked example
A car priced at INR 600,000 with INR 100,000 down and no financed extras creates INR 500,000 principal. At 0% over 50 months, EMI is INR 10,000.
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Frequently asked questions
How is the principal calculated?
The model taxes the full stated vehicle price, adds financed fees, then subtracts cash down and net trade-in credit.
Does trade-in credit reduce sales tax?
This model applies tax to the full vehicle price. If your quote uses different tax rules, set tax to zero and include the actual financed tax in fees.
Can the down payment exceed the purchase cost?
The financed principal must stay positive. A cash purchase needs no EMI.