About this calculator
Enter your take-home income, the share you want for the car EMI, your down payment, and the loan rate and tenure.
How to use it
- Enter your take-home income and the share for the EMI.
- Enter your down payment.
- Enter the loan rate and tenure.
The formula
- share
- the % of income for the car EMI
- loan
- present value of the EMIs at the loan rate
Worked example
₹1 lakh income, 15% for EMI, ₹2 lakh down, 9% for 4 years
- EMI = ₹15,000.
- That repays a loan of ₹6,02,772.
- Car you can afford: ₹8,02,772 on-road.
What the result means
The 20/4/10 rule is a good check: at least 20% down, loan of 4 years or less, and total car costs under 10% of income.
Assumptions
- A fixed rate.
Limitations
- Fuel, insurance, service and parking are not included.
Frequently asked questions
What is the 20/4/10 rule?
Put at least 20% down, borrow for no more than 4 years, and keep total car costs below 10% of income.
Should I take a longer loan to buy a bigger car?
A longer loan lowers the EMI but raises interest, and the car loses value faster than the loan falls.
Is on-road price the same as ex-showroom?
No. On-road adds registration, road tax and insurance.
For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.
Last reviewed on 1 October 2026. Found a mistake? Tell us.