Calculators / Car Cost of Ownership

Car Affordability & Ownership Cost

First, check the car against your income. Then see what it really costs: the sticker price is only the start. Add interest, fuel, insurance, upkeep and the value you lose when you sell, and see what each kilometre really costs.

Affordability check
Household in-hand income after tax
Total cost
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Per month
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Per km
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Monthly EMI
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Can you afford it? The 20/4/10 test

Where the money goes

Insurance is assumed to fall 10% a year as the car's insured value drops, and upkeep to rise 8% a year. If you sell before the loan ends, the outstanding balance is paid from the sale and only interest actually paid is counted.

The 20/4/10 rule

A widely used rule of thumb for buying a car without straining your finances: put down at least 20%, take a loan of no more than 4 years, and keep total monthly car costs (EMI, fuel, insurance and upkeep) under 10% of your take-home pay. Many Indian buyers stretch this to 15%. Treat it as a guide, not a law: if you'll pay in cash or rarely drive, the numbers shift.

Why opportunity cost is included

The down payment could have stayed invested. If it would have earned 10% a year, that lost growth is a real cost of owning the car, even though you never see a bill for it.