1. What is a Car Loan EMI Calculator?

The Car Loan EMI Calculator helps you determine your monthly payments and shows how each payment is split between principal and interest over the loan term. The prepayment table shows the loan balance after each payment.

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

• \( Interest_k \) — Interest portion of k-th payment
• \( Principal_k \) — Principal portion of k-th payment
• \( Balance_k \) — Remaining balance after k-th payment
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( PMT \) — Monthly payment amount (EMI)

3. Importance of Prepayment Table

Details: The prepayment table helps you understand how much interest you'll pay over the loan term and how making additional principal payments can reduce your total interest cost.

4. Using the Calculator

Tips: Enter the loan amount, annual interest rate, and loan term in years. The calculator will show your monthly payment and a detailed breakdown of each payment.

5. Frequently Asked Questions (FAQ)

Q1: How can I reduce my total interest paid?
A: Making additional principal payments or choosing a shorter loan term will reduce your total interest cost.

Q2: Why does the interest portion decrease over time?
A: As you pay down the principal, the interest is calculated on a smaller remaining balance each month.

Q3: What happens if I make a lump sum payment?
A: A lump sum payment directly reduces your principal balance, which will lower your future interest payments.

Q4: Are there prepayment penalties?
A: Some lenders charge prepayment penalties - check your loan agreement before making extra payments.

Q5: How accurate is this calculator?
A: This provides a good estimate, but your actual payments may vary slightly depending on the lender's specific calculation method.