🇮🇳 Finance Calculator
Car Affordability Calculator
Find out how much car you can realistically afford based on your income, monthly expenses, and savings. Uses a common Indian EMI-to-income guideline as a baseline, not a regulatory rule.
Your Financial Snapshot
After tax and PF deductions.
Home loan, personal loan, credit card EMIs, etc.
Max Car Price
based on your budget
Max Monthly EMI
₹0
Suggested Down
₹0
Max Loan Amount
₹0
Total EMI-to-Income
0%
Budget Health
The 15/20/5 Guideline Explained
A common rule of thumb used by Indian financial planners - not an RBI regulation or lender requirement.
How affordability is calculated.
Max Loan = Max EMI using EMI formula
Max Price = Max Loan + Down Payment
Total EMI-to-Income = (Existing EMIs + Car EMI) / Income
Why 15%?
Indian financial advisors commonly suggest keeping all car-related expenses (EMI + insurance + fuel) under 20% of take-home pay. This calculator applies a slightly more conservative 15% to just the EMI and insurance, leaving room for fuel and maintenance.
Why does total EMI-to-income matter?
Lenders typically want your total EMI obligations (all loans ÷ take-home income) to stay under about 40–50%. A higher ratio may result in loan rejection or a higher interest rate.
Frequently asked questions.
How much car can I afford on a ₹50,000/month salary?
Using the 15% guideline: ₹50,000 × 15% = ₹7,500 max monthly car budget. Subtract ~₹1,500/month insurance and you have ~₹6,000 available for EMI. At 9.5% APR over 60 months, that supports a loan of roughly ₹2.8–3 lakh - so with a ₹1 lakh down payment, a car priced around ₹3.8–4 lakh.
Should I use gross or take-home income?
This calculator uses your monthly take-home (net) pay, since that's what's actually available to spend after tax and PF deductions - a more realistic budgeting basis than gross salary for Indian salaried buyers.
Is 0% down payment a good idea?
Financing with no money down means your loan balance immediately exceeds the car's value, since new cars typically lose 15–20% of their value in year one. This puts you "upside-down" - you'd owe more than the car is worth if you needed to sell or the vehicle was written off.
What CIBIL score do I need for a car loan?
Most banks and NBFCs approve loans with a CIBIL score above 700, but you'll get the best rates (under 10% APR) with a score above 750. Below 650 often means loan rejection or a subprime rate with a co-applicant/guarantor requirement.
What is a reasonable EMI-to-income ratio for a car in India?
There's no RBI-mandated ratio for car loans - the 15% figure here is a common rule of thumb used by Indian financial planners for total car costs (EMI + insurance) against take-home pay. It's guidance, not regulation, so treat it as a sanity check rather than a hard limit.
Does my other debt (home loan, personal loan) affect how much car I can afford?
Yes. Indian lenders generally want your total EMI obligations - all loans combined, including the new car - to stay under about 40–50% of take-home pay (this varies by bank). Existing home loans, personal loans, or credit card EMIs all reduce the car EMI you'll realistically qualify for.