Car Affordability Calculator (20/4/10 Rule)

How much car can you afford?

This calculator works backwards from your income. It takes the share of income you are willing to spend on your car each month, subtracts the running costs (fuel, insurance and servicing), and uses what is left as the maximum EMI. From that EMI, the interest rate and tenure, it works out the largest loan you can carry, and adds your down payment to give the maximum on-road price.

The defaults follow the classic 20/4/10 rule: 20% down, a four-year loan and total car costs under 10% of gross income. It is deliberately conservative. Try 15% and five years to see a more typical Indian budget, and notice how much more you pay in interest.

Estimating running costs

Use our fuel cost calculator for the fuel part. Add roughly ₹1,500–4,000 a month for insurance and servicing on a typical car. Our guide to car service costs gives brand-wise figures.

From budget to shortlist

Once you know your maximum on-road price, look at our best cars under ₹10 lakh or best SUVs under ₹15 lakh, then check the exact EMI in the car EMI calculator.

Frequently asked questions

What is the 20/4/10 rule for buying a car?

Put down at least 20%, take a loan of no more than 4 years, and keep total monthly car costs (EMI, fuel, insurance and maintenance) under 10% of your gross monthly income.

Is the 20/4/10 rule too strict for India?

It is conservative. Many Indian buyers use five-year loans and spend 15% of income. The calculator lets you change the limits to see the trade-offs.

Does the result mean on-road or ex-showroom price?

The result is the maximum on-road price. The ex-showroom price you can target is roughly 10–20% lower, depending on your state’s road tax.

Results are estimates for planning. Taxes, rates and prices vary by state, lender and dealer, so confirm final figures before you sign anything.