Car affordability calculator answers a practical question: given my salary and existing loans, what car can I actually buy?
About this calculator
Car affordability calculator answers a practical question: given my salary and existing loans, what car can I actually buy? Enter net monthly take-home, current EMIs (home, personal, credit card), the down payment you can put up, prevailing car loan rate, and tenure. You get a maximum car price and the EMI that fits your budget.
Indian lenders usually allow 40–50% FOIR across all loans, but putting 15% of income toward a car alone keeps room for fuel, insurance, and maintenance. A ₹75,000 salary with ₹8,000 existing EMI and 15% car-EMI cap leaves about ₹3,250/month for the car — roughly a ₹1.5–1.7 lakh loan at 9.5% for 5 years.
Verify the EMI with the [[emi]] calculator, compare new vs used with total cost of ownership, and check how the purchase affects [[income-tax]] if you claim car allowance. Business buyers should also run [[gst]] on vehicle input credit rules.
Common uses
- First job graduate checking if a ₹12 lakh hatchback fits on ₹60K salary
- Family upgrading from two-wheeler with ₹1 lakh down payment saved
- IT professional with ₹15K home EMI evaluating SUV budget
- Deciding between 7-year tenure (lower EMI) vs 5-year (less interest)
- Comparing bank vs NBFC rate impact on affordable car segment
Frequently asked questions
How much car EMI is safe on a ₹1 lakh monthly salary in India?
Keep the car EMI alone under 10–15% of net income — ₹10,000–15,000 on ₹1 lakh. Total EMIs including home loan should stay under 40–50%. This leaves cash for fuel, insurance, and emergencies.
What down payment do banks require for a new car loan?
Most lenders ask 10–20% down on ex-showroom price. Some NBFCs finance up to 90% for salaried customers with good credit. Higher down payment lowers EMI and total interest.
Does this include insurance and registration in the car price?
Enter on-road price if your loan covers registration and insurance. Ex-showroom-only loans need a higher down payment to cover RTO and first-year insurance out of pocket.
Can I afford a ₹15 lakh car on ₹80,000 monthly income?
With ₹80K income, 15% car-EMI cap, and no other debts, you might afford roughly ₹6–8 lakh on-road depending on rate and tenure. Enter your exact numbers — existing EMIs reduce the budget sharply.