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Car Loan EMI Calculator by Flat Rate
EMI
Flat Rate
Reducing Balance
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Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
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EMI
25833
Interest
550000
Principal
1000000
Total
1550000
550 K
(5 Lac)
5
Year
1,000,000
430 K
(4 Lac)
Year
Original
Reduced
𝒊
25833
will be
EMI
for
1000000
(1 m/10 Lac)
Loan Amount
for
5
Year
Loan Tenure
at
11.00%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(10 K)
(20 K)
(30 K)
(40 K)
(50 K)
(60 K)
(70 K)
(80 K)
(90 K)
(100 K)
in
0
1
2
3
4
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
5 year
550000
Reduced
3 year
11 months
430833
Saved
1 year
1 month
119167
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
421 K
(4 Lac)
315 K
(3 Lac)
210 K
(2 Lac)
105 K
(1 Lac)
0
-
-
-
-
-
2024
2026
2028
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Car Loan EMI by Flat Rate
A Car Loan EMI by Flat Rate on the original principal amount throughout the loan term, resulting in fixed, equal monthly payments. This approach simplifies budgeting due to consistent EMIs, but it typically leads to higher overall interest costs compared to methods where interest is calculated on the reducing balance. Calculate your Car Loan EMI with our easy-to-use Car Loan EMI Calculator by Flat Rate Calculator. Plan your repayments, understand the interest and get a clear view of your loan details to drive your dream car without hassle.
Calculate Car Loan EMI by Flat Rate
Enter loan details like loan amount, interest rate, tenure, and choose months or years to calculate car loan EMI by flat rate.
Click Calculate to view your initial breakdown and calculate car loan EMI by flat rate based on your inputs.
Customize payment options to calculate your car loan EMI by flat rate.
Select extra EMIs per year to reduce and calculate your car loan EMI tenure.
Increase EMIs by a percentage to manage and calculate your car loan EMI better.
Select a lump sum payment in a specific year to reduce your interest and calculate your car loan EMI.
Adjust inputs and click Recalculate to update your car loan EMI tenure and interest dynamically.
Flat Rate EMI formula
To calculate Car Loan EMI, use the Flat Rate EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E
M
I
=
P
+
(
P
×
r
×
n
)
n
EMI
= Equated Monthly Installments
P
= Principal loan amount
r
= Monthly interest rate
n
= Number of monthly installments
Eligibility Criteria for Car Loan EMI by Flat Rate
Age and Income:
Applicants should meet the minimum age requirement and have a stable source of income, meeting the lender's specified income threshold for a car loan EMI.
Creditworthiness:
A good credit score is essential, reflecting a positive credit history and repayment behavior, particularly important for obtaining a car loan EMI by flat rate.
Employment Stability:
Borrowers should demonstrate stable employment, typically with a minimum tenure in their current job or business to qualify for a car loan EMI.
Documentation:
Applicants need to provide necessary documents, including identification proof, income documents, and address proof, to support their car loan EMI application.
Car Loan EMI Calculator by Flat Rate FAQ
How does Flat Rate EMI differ from a Reducing Balance EMI?
Flat rate EMI calculates interest on the original principal amount throughout the loan term, resulting in fixed, equal monthly payments. In contrast, reducing balance EMI calculates interest on the outstanding principal, which decreases with each repayment, leading to gradually lower EMIs and typically lower overall interest costs.
What are the advantages of a Car Loan EMI by Flat Rate?
Car loan EMI by flat rate offers predictable monthly payments, making budgeting and financial planning easier for borrowers. The flat rate method is simple and straightforward, appealing to those who prefer a clear and easy-to-understand repayment schedule.
What are the disadvantages of a Car Loan EMI by Flat Rate?
Car loan EMI by flat rate can lead to higher interest costs since interest is calculated on the full principal amount throughout the loan term. This method may be less cost-efficient, especially for longer tenures, as it doesn’t adjust interest based on the reducing principal balance.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
550000
1 Extra EMI/ year
5 year
▶ 0 year
495000
▶ 55000
2 Extra EMI/ year
4 year
▶ 1 year
440000
▶ 110000
3 Extra EMI/ year
4 year
▶ 1 year
430833
▶ 119167
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
550000
Increase EMI by 1%
5 year
▶ 0 year
540833
▶ 9167
Increase EMI by 3%
5 year
▶ 0 year
513333
▶ 36667
Increase EMI by 5%
5 year
▶ 0 year
485833
▶ 64167
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
550000
Pay 10% in 2nd year
5 year
▶ 0 year
504167
▶ 45833
Pay 20% in 3rd year
5 year
▶ 0 year
449167
▶ 100833
Pay 30% in 4th year
4 year
▶ 1 year
440000
▶ 110000
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
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