Skip to content
Finance Calculators

Car Affordability Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
5 years
1 years8 years
₹
Verified formula Private

Car price you can afford

₹11,63,467

Loan amount
₹9,63,467

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Car Affordability Calculator

The Car Affordability Calculator works out your car price you can afford, along with 1 related figure in an instant. Enter monthly payment budget, loan interest rate and loan tenure and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the monthly payment budget.
  2. Enter the loan interest rate.
  3. Set the loan tenure.
  4. Enter the down payment.
  5. Read off your car price you can afford, together with loan amount — the calculator updates automatically, with no button to press.

Formula

The Car Affordability Calculator uses the formula:

Car price you can afford = Monthly payment budget × (1 - pow(1 + Loan interest rate ÷ 100 ÷ 12, -(Loan tenure × 12))) ÷ (Loan interest rate ÷ 100 ÷ 12) + Down payment

Worked example

For example, with monthly payment budget of ₹20,000, loan interest rate of 9%, loan tenure of 5 years and down payment of ₹200,000, the car price you can afford is ₹11,63,467.

Inputs used
Monthly payment budget ₹20,000
Loan interest rate 9%
Loan tenure 5 years
Down payment ₹200,000
Results
Car price you can afford ₹11,63,467
Loan amount ₹9,63,467

Results are estimates for educational use, not professional advice.

Key terms explained

Down payment
The upfront portion of a purchase price you pay yourself, with the rest financed by a loan.
Interest rate
The percentage charged on a loan or paid on savings, usually quoted per year (per annum).
Tenure
The length of time over which a loan is repaid or an investment is held.

Frequently asked questions

Work backwards from the monthly payment you are comfortable with. A 20,000 budget over 5 years at 9% supports a loan of about 9,63,000, plus your down payment.

A common guideline keeps your total vehicle costs within about 15–20% of take-home pay, including fuel, insurance and maintenance, not just the EMI.

It lowers the monthly payment so you can borrow more, but you pay more total interest. Balance affordability against the overall cost.

No. This covers the purchase price only. Budget separately for insurance, fuel, servicing and registration.

The Car Affordability Calculator uses the formula: Car price you can afford = Monthly payment budget × (1 - pow(1 + Loan interest rate ÷ 100 ÷ 12, -(Loan tenure × 12))) ÷ (Loan interest rate ÷ 100 ÷ 12) + Down payment. For example, with monthly payment budget of ₹20,000, loan interest rate of 9%, loan tenure of 5 years and down payment of ₹200,000, the car price you can afford is ₹11,63,467.

Enter the monthly payment budget. Enter the loan interest rate. Set the loan tenure. Enter the down payment. Read off your car price you can afford, together with loan amount — the calculator updates automatically, with no button to press.

Related calculators