Car Affordability Calculator — Find Your Budget Before Shopping
Calculate the maximum car price you can comfortably afford based on your income down payment and monthly budget. Avoid overspending on your next vehicle.
Financial experts recommend spending no more than 10-15% of your gross monthly income on total car costs including EMI insurance fuel and maintenance. Many people overspend on cars buying vehicles that strain their finances for years. Our calculator helps you determine a realistic car budget that keeps your finances healthy while still getting a car you enjoy driving.
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Key Information
| Parameter | Details |
|---|---|
| Recommended Budget | 10% - 15% of gross monthly income |
| India Average Car Loan Rate | 8% - 12% |
| US Average Auto Loan Rate | 6.5% - 8% |
| Ideal Down Payment | 20% of car price |
Calculate your car budget
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Use Calculator NowFrequently Asked Questions
How much car can I afford on Rs 50000 salary?
At Rs 50000 monthly salary the maximum you should spend on total car costs (EMI + insurance + fuel) is Rs 5000-7500 per month. With Rs 5000 EMI budget at 9% for 5 years you can borrow approximately Rs 2.45 lakh. Adding a down payment of Rs 1 lakh your total car budget is Rs 3.45 lakh. This points to cars like Maruti Alto WagonR or pre-owned vehicles in good condition.
Should I buy new or used car?
A new car loses 20-30% of its value in the first 2 years. A 2-3 year old certified pre-owned car offers nearly the same experience at 40-50% lower cost. On a $30000 new car you lose $6000-$9000 to depreciation in year one. The same model at 2 years old costs $18000-$21000 with most of the depreciation already absorbed by the first owner.
Is leasing better than buying a car?
Leasing offers lower monthly payments and a new car every 3 years but you never build equity and face mileage restrictions. Buying costs more monthly but after paying off the loan you own the car outright. If you drive more than 15000 miles per year or plan to keep the car 5+ years buying is almost always cheaper in the long run.
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Last updated: 24 March 2026