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Car Affordability Calculator
Estimate an illustrative car price range from your take-home pay, expenses, EMIs, down payment and running costs, using budget rules you can edit.
Smart result
Your estimate will appear here
Change any editable assumption, calculate, then review the steps, assumptions and limitations before deciding.
How this estimate works
Three monthly limits are compared: your car budget share minus running costs, your total-EMI share minus current EMIs, and cash left after expenses minus running costs. The smallest becomes the EMI limit, which is converted into a loan and added to your down payment.
Formula
- EMI limit = min(income × car share − running, income × EMI share − current EMIs, income − expenses − EMIs − running)
- Loan = EMI × (1 − (1 + r)^−n) ÷ r, r = yearly rate ÷ 12
- Price range = down payment + loan at 75% and 100% of the EMI limit
Limitations
- Budget shares are your planning choices, not lender eligibility rules.
- Lenders also assess credit history, employment, age and the car itself.
- Running costs are averaged and held flat.
Data used
No official dataset is used. Every rate, price and premium is entered by you or is a labelled, editable assumption.
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Frequently asked questions
Is the affordable price what a bank will lend?+
No. It is what fits the planning limits you chose. A lender decides actual eligibility and may offer more or less.
Why are there two prices?+
The conservative price uses 75% of your EMI limit to leave a buffer; the stretch price uses the full limit.
How accurate is this car affordability estimate?+
It will provide an indicative estimate based on your inputs and the stated assumptions. Actual results can vary by location, equipment, tariff, and usage.
Can I use the result to make a purchase?+
Use it as a starting point, then confirm current prices, specifications, eligibility, and site requirements with a qualified provider.