About the Car Ownership Cost Calculator
What is the Car Ownership Cost Calculator?
A car costs much more than its EMI. This car ownership cost calculator adds depreciation, interest, running costs and the returns your down payment could have earned.
It gives the true monthly cost, the cost per km and the cab fare for the same distance.
How to use the Car Ownership Cost Calculator
- On-road Price (₹) (sample: 12,00,000)
- Down Payment (₹) (sample: 3,00,000)
- Car Loan Rate (%) (sample: 9)
- Loan Tenure (years) (sample: 5)
- Years You Will Keep the Car (sample: 6)
- Resale Value at the End (% of price) (sample: 40)
- Kilometres a Month (sample: 1,000)
- Mileage (km/L) (sample: 15)
- Fuel Price (₹/L) (sample: 105)
- Insurance per Year (₹) (sample: 30,000)
- Service and Repairs per Year (₹) (sample: 20,000)
- Parking, Tolls, Cleaning per Month (₹) (sample: 3,000)
- Return You Could Earn on the Down Payment (%) (sample: 7)
- Cab Fare for Comparison (₹ per km) (sample: 18)
- Press Calculate True Car Cost (results also refresh as you type). The result card shows the True Monthly Cost, along with Loan EMI, Depreciation, Interest paid and Fuel.
Formula used
Total = Depreciation + Loan interest + Fuel + Insurance + Service + Parking + Lost returns
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| On-road Price (₹) | 12,00,000 |
| Down Payment (₹) | 3,00,000 |
| Car Loan Rate (%) | 9 |
| Loan Tenure (years) | 5 |
| Years You Will Keep the Car | 6 |
| Resale Value at the End (% of price) | 40 |
| Kilometres a Month | 1,000 |
| Mileage (km/L) | 15 |
| Result | Value |
|---|---|
| True Monthly Cost | ₹29,322 |
| Loan EMI | ₹18,683 |
| Depreciation | ₹7,20,000 |
| Interest paid | ₹2,20,951 |
| Fuel | ₹5,04,000 |
| Insurance, service, parking | ₹5,16,000 |
| Lost returns on the down payment | ₹1,50,219 |
| Total cost of owning | ₹21,11,170 |
Tips for using the Car Ownership Cost Calculator
- Follow the 20/4/10 rule: 20% down, loan of at most 4 years, and all car costs under 10% of income.
- If you drive under 500 km a month, cabs are often cheaper than owning.