How this calculation works
Translate an on-road vehicle price into the amount financed after your down payment. Compare the monthly instalment and the full borrowing cost using the quoted interest method. A processing fee raises total cost in this model but does not increase the loan balance or monthly instalment. The result is a financing estimate, not a vehicle ownership comparison: fuel, depreciation and upkeep belong in a separate budget.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For a ₹6,00,000 car, ₹1,20,000 down payment, 12% annual reducing-balance interest, a two-year term and ₹2,400 processing fee, principal is ₹4,80,000. The monthly payment is ₹22,595.27. Total repayment including the separate fee is ₹5,44,686.40, of which ₹64,686.40 is interest and fees. Totals use the unrounded instalment.
Assumptions and limits
- The on-road price is supplied by you; included insurance, registration and dealer charges are not looked up or added again.
- The processing fee is paid separately and is excluded from financed principal. No balloon, resale credit, extra repayment or rate change is modelled.
Questions people ask
Should I use ex-showroom or on-road price?
Use the price actually being funded, including the purchase charges included in the loan arrangement. Avoid adding the same insurance or registration cost twice.
Is the down payment part of total repayment?
No. The displayed total repays the loan and fee. Add the down payment separately when assessing complete purchase cash outflow.