Car Affordability Calculator — how much car you can afford
The 20/4/10 rule is a simple test for a car purchase. Enter your income and running costs to see the car price it allows, and check the car you are looking at.
⚠ This car is over the rule
20/4/10: at least 20% down, a loan of 4 years or less, and every car cost within 10% of income. A guide, not a rule — but a car loses value every year.
Add the loan in Spendly and each EMI is set aside before it is due — so it never looks like spending money.
Track my loans →How it is calculated
20/4/10 means: at least 20% down, a loan of no more than 4 years, and all car costs — EMI, fuel, insurance, service and parking — within 10% of your monthly income.
The calculator takes 10% of income, subtracts running costs to get the EMI room, works out the 4-year loan that EMI supports, and adds the 20% down payment to get the price. It is a cautious rule: a car loses value every year, so every rupee in it is a rupee not growing.
Car cost cap = income × 10% · EMI room = cap − running costs Loan = EMI room × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ), n = 48 months Car price = loan ÷ (1 − 20%)
Questions
How much should I spend on a car in India?
The 20/4/10 rule keeps all car costs within 10% of income. Many people stretch to 15%; beyond that the car starts crowding out saving.
Should I take a 7-year car loan for a lower EMI?
It lowers the EMI but you pay much more interest, and the car may be worth less than the loan for years. Keeping the loan to 4 years is the point of the rule.
Is on-road price the right figure?
Yes. It includes registration, road tax and insurance, which are part of what the car costs you.
Can Spendly track a car loan?
Yes. Add it as a loan and Spendly sets each EMI aside before it is due, with the principal and interest left.
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