auto loan calculator, car loan calculator

Most people who buy a car do not pay the total amount in cash. But how do you calculate the total EMI amount of a car loan. There are multiple reasons for taking a loan for buying a car. Due to this car finance companies exist in the market. Every company has its own auto loan calculator or car loan calculator. Sometimes this is the rebadged version of the same software. In this article you will understand the basics of auto loan. Additionally, We have auto loan calculator options from all the leading players in the market so you can calculate and compare the exact price of a vehicle.

What is Auto Loan Calculator

When you buy a vehicle and take a loan from the bank they ask you to pay some EMI every month. Full form of EMI is easy monthly installments. Easy depends on your income. If your monthly income is good then every EMI can be easy EMI.

How is a Car Loan different from a Bike Loan?

If you are looking for a comparison between car loan and bike loan then you will not find much difference. Just the vehicle is different. Two wheeler vs four wheeler should be compared as Vehicles. The result of the auto loan calculator shows the same results in both cases.

Why take a vehicle loan? Does that impact buying decisions?

Reason for taking a vehicle loan is different for different people. Starting from economic reasons to personal reasons, the list is long. You can read our article about the reason for taking loan for a car.

Now the second question, your loan amount does impact buying decisions. If your reason for taking an auto loan is due to low interest, this may change. Due to this, people use an auto loan calculator to check the final payment amount and decide.

How is an auto loan different from a home loan?

First of all, both of these products are different from each other in many ways. If you read the definition of a car in accounting, this comes as liability which has depreciation year on year basis. On the other hand, a house is an asset.

The price of houses keeps on increasing. You can sell it whenever you want and invest the money somewhere else.

Now let us talk about how the interest rates of a home loan are calculated on reducing balance in most cases.

Interest of a vehicle loan is not on reducing balance.

Due to this, if you enter same amount in auto loan calculator and home loan calculator, the EMI amount will be different.

Benefits of taking a car loan

First of all you do not need to make a huge upfront payment. You pay a small down payment and drive the car home.

Taking a car loan or a bike loan and paying on time is one of the best ways of improving credit score.

You may be running a business or working under an employer cash reserve is important. If you have a cash reserve in account, it is good in case of an emergency situation. Taking a loan keeps that reserve intact.

Loan EMI Calculators List – USA

Here is a list of auto loan calculators from various financial institutions.

Auto Loan EMI Calculator – Bank Rate

Auto Loan EMI Calculator – Bank of America

Standard Auto loan Calculator – Click Here

Loan EMI Calculators List – India

Here is a list of auto loan calculators from various financial institutions.

Car Loan EMI Calculator – ICICI Bank

Loan EMI Calculator – Bank of Baroda

Car Loan EMI Calculator – HDFC

Car Loan EMI Calculator – Axis Bank

EMI Calculator – Bank Bazaar

EMI Calculator from EMICalculator.NET

Frequently Asked Question

Car Loan Calculator or an Auto Loan Calculator

There are many reasons to buy a car and when you do not have a budget, an auto loan calculator comes into picture. Every bank has its own calculator for checking car loan EMI but the basic calculation remains similar if not the same. Here is a list of some questions that mostly people ask about car loan calculators.

How does a car loan calculator work?

When you are using a car loan calculator there is a five step process to get results.

1 – In the first step you enter the down payment for a car loan.

2 – Here you enter the loan amount. Loan amount is the remaining amount when you deduct down payment from the total price of the car.

3 – Next step is to enter the interest rate that you are expecting. The standard interest rates for car loans fall between 5 percent to 10 percent. The interest rate for an auto loan depends on your credit score. You can enter a generic number that you feel like.

4 – Here you enter the tenure of the car loan. You can enter any normal car loan tenure.

5 – In the last step you click on the “Calculate” button. Now you can see the check car loan EMI and interest amount during the tenure of the car loan.

What is the full form of EMI?

When you buy a vehicle and take a loan from the bank they ask you to pay some EMI every month. Banks use a software application for checking EMI amounts. This software is a loan calculator for cars.

What is the standard tenure for car loans?

There is no fixed tenure for taking out a loan for a car. This depends on the bank and customer profile. You can select anywhere between 3 years to 5 years in a common scenario.

What is the down payment for a car loan?

Down payment is the advance payment (a form of token money) that you pay against the vehicle. This is the only amount you pay while purchasing a car. The remaining amount or the balance amount comes from a bank. Banks use a loan calculator and tell you about the monthly installment for the car.

How does a car loan calculator or an auto loan calculator decide the interest rate?

Car loan calculators do not decide interest, you enter them manually in most cases. Only the calculator method for car loans is fixed. As soon as you enter all the values and click on the “Calculate” button, you can see the results.

Do we get the same EMI amount from all auto loan calculators?

I am sure you are talking about when you enter the same numbers in all the loan calculators. Yes, the result will be the same because auto loan calculation is normally part of a country’s loan amount calculation policies. But in some cases, banks are allowed to give loans as per their policies. In this case the value will be different.

Additionally, value can also change due to the auto loan calculation method. For example one calculator uses a fixed interest rate method and others can use a reducing balance method. In both cases the result will be different.

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