Car · Affordability · Total Ownership Cost

Car Affordability Calculator —
The Real Cost of Owning a Car

Rule: Car price should not exceed 50% of annual take-home pay. Total ownership cost (EMI + insurance + fuel + maintenance) should stay under 20% of monthly income.

Rule: Car price should not exceed 50% of annual take-home pay. Total ownership cost (EMI + insurance + fuel + maintenance) should stay under 20% of monthly income.
Enter Details
Amount
₹700,000
₹1K₹1Cr
Rate
8%
1%36%
Period (years)
7 yrs
1 yr40 yrs
Result
₹0
calculated value
Invested
₹0
Returns
₹0
Return %
0%
Rate
0%

Frequently Asked Questions

How much car can I afford on ₹1 lakh salary?+
Annual take-home ₹12L → comfortable car budget ₹6L. EMI limit: 15-20% of monthly income = ₹15-20K/month supporting ₹7-9L car on 7-year loan. Add insurance ₹20-40K/year, fuel ₹3-6K/month — total cost matters more than just EMI.
Should I buy a car on loan or in cash?+
If car loan rate > 9% and you can earn 12%+ on investments, invest and take loan. But cars are depreciating assets — minimise loan, keep down payment at 20-30%. Never take a 100% car loan.