Car Affordability Calculator: How Much Car Can I Afford on My Salary?
Free tool · Updated October 3, 2026 · By CouponTalk · Reviewed by CouponTalk Expert Reviews on
Your result
Enter your measurements to see your result.
Quick answer
The 20/4/10 rule says: pay at least 20% down, borrow for no more than 4 years, and keep the EMI plus fuel, insurance and service under 10% of your income. On ₹1 lakh a month take-home with ₹4,000 of running costs, that leaves ₹6,000 for the EMI, so about a ₹3 lakh car at 9%. A relaxed 15% limit raises it to about ₹5.5 lakh.
How to use this calculator
- Enter your monthly take-home pay and the car's running costs.
- Pick how strict you want to be.
- Add the loan rate, tenure and the cash you have for a down payment.
Car you can afford by income (20/4/10 rule)
| Monthly take-home | Car price at 10% (20/4/10) | At 15% (relaxed) |
|---|---|---|
| ₹50,000 | ₹50,000 | ₹180,000 |
| ₹75,000 | ₹180,000 | ₹360,000 |
| ₹100,000 | ₹300,000 | ₹550,000 |
| ₹150,000 | ₹550,000 | ₹930,000 |
| ₹200,000 | ₹800,000 | ₹1,310,000 |
A planning rule of thumb, not financial advice.
Frequently asked questions
Is the 20/4/10 rule realistic in India?
It is strict but safe. Many buyers stretch to 15% of income; above 20% the car starts to crowd out savings.
Should I count fuel in the 10%?
Yes. Fuel, insurance and service are part of owning the car, and fuel alone can be ₹3,000–₹8,000 a month.
What if I pay cash?
Cash avoids interest, but keep an emergency fund of 6 months of expenses first.
Related calculators
EMI CalculatorMonthly EMI, interest and total cost
No-Cost EMI True Cost CalculatorGST on interest + fee = real cost
Affordability CalculatorIncome to safe EMI and max price
Buy Now Pay Later CalculatorInstalment, fees and real yearly cost
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