Loan Details
Down Payment
Taxes & Fees
Loan Amount
The loan amount is the actual money you borrow from the bank.
How it is calculated:
Car Price + Taxes + Fees − Down Payment
Meaning:
It is the remaining amount you still need after paying your initial money.
Down Payment
The down payment is the money you pay from your own pocket at the start.
Meaning:
- You pay this first
- It reduces the loan amount
- The higher the down payment, the smaller the loan
Interest
The interest is the extra money you pay to the bank.
Meaning:
- It is the bank’s profit
- You pay it on top of your loan
- It increases total cost
Formula:
Total Payment − Loan Amount = Interest
Monthly Payment (EMI)
The monthly payment (EMI) is the fixed amount you pay every month.
Meaning:
- You pay it monthly until loan ends
- It includes both loan + interest
- Same amount every month
Total Cost
The total cost is the full amount you pay over the entire loan period.
Meaning:
- It includes loan + interest
- It is always higher than the original car price
Formula:
Monthly EMI × Number of Months