# Car Affordability Calculator: The 20/4/10 Rule for India > Car affordability calculator using the 20/4/10 rule adapted for India: see the on-road price your pay supports, the EMI, down payment and running costs. Source: https://trykosh.com/tools/car-affordability-calculator Free tool - Loans and credit cards # Car affordability calculator Find a car budget that won't crowd out your savings, using a simple rule of thumb adapted for Indian incomes and loans. Rules checked 25 October 2026Free - no sign-upRuns in your browser Car you can afford (on-road) INR 5.97 lakh INR 5,97,059: 20% down, INR 4.78 lakh loan over 4 years EMI**INR 12,000** Down payment**INR 1,19,412** All car costs**15% of pay** EMI budget INR 12,000 Loan it supports INR 4,77,647 Down payment INR 1,19,412 On-road price INR 5,97,059 EMI + running costs a month INR 18,000 Total interest on the loan INR 98,353 Price as months of take-home pay 5.0 20/4/10, adapted: at least 20% down, a loan of four years or less, and an EMI near 10% of take-home pay. It's a guide for keeping a car from crowding out savings, not a lender rule. ## Upload your statement and Kosh does this for you. Upload a bank or card statement and Kosh finds every EMI and card charge, then builds the fastest way out of debt that still fits your month. [Start free](/signup?via=tool-car-affordability-calculator) ## How the car affordability calculator works The 20/4/10 rule is a popular guide: put at least 20% down, borrow for no more than 4 years, and keep the car EMI near 10% of your monthly income. It's guidance for a sensible budget, not a lender requirement; banks will usually lend more. Enter your monthly take-home pay and the share you're willing to spend on the EMI. The calculator works out the loan that EMI repays at your rate and tenure, then grosses it up by the down payment to get the on-road price you can afford. Running costs matter as much as the EMI. Add fuel, insurance spread over the year, servicing and parking. The calculator shows EMI plus running costs as a share of your pay and warns if it goes above a fifth. Keep the tenure short. A car loses value fastest in its first years, and a long loan means you may owe more than the car is worth if you need to sell. On-road price = PV of (take-home x EMI share) over the tenure / (1 − down payment %) PV the loan an EMI repays at the loan rate 20/4/10 20% down, 4 years, EMI about 10% of pay ## Worked example: Ishaan's first car in Kochi Ishaan takes home INR 90,000 a month. He is willing to spend 12% on the EMI, put 25% down and clear the loan in 3 years. At 9.5%, a INR 10,800 EMI supports a INR 3,37,153 loan, so he can afford a car of about INR 4.5 lakh on-road with INR 1,12,384 down. With INR 5,000 a month for fuel and upkeep, the car takes 17.6% of his pay. Car you can afford (on-road) INR 4.5 lakh INR 4,49,537: 25% down, INR 3.37 lakh loan over 3 years EMI**INR 10,800** Down payment**INR 1,12,384** All car costs**17.6% of pay** EMI budget INR 10,800 Loan it supports INR 3,37,153 Down payment INR 1,12,384 On-road price INR 4,49,537 EMI + running costs a month INR 15,800 Total interest on the loan INR 51,647 Price as months of take-home pay 5.0 20/4/10, adapted: at least 20% down, a loan of four years or less, and an EMI near 10% of take-home pay. It's a guide for keeping a car from crowding out savings, not a lender rule. [Load this example into the calculator ->](?income=90000&emiPct=12&downPct=25&years=3&running=5000#calculator) ## Good to know - Budget on the on-road price: ex-showroom plus road tax, registration and insurance. Road tax varies a lot by state and by the car's price and fuel type. - Insurance renewals, tyres and the first major service land in years two to four. Put them in the running-cost figure, averaged per month. - A car bought for personal use gets no tax benefit on the loan. For a business or profession, the interest and depreciation may be deductible in proportion to business use. ## Frequently asked questions What is the 20/4/10 rule for buying a car? Put down at least 20%, finance for no more than 4 years, and keep the car EMI around 10% of monthly income. It's a rule of thumb for not overspending on a car, not a lender rule. How much should I spend on a car in India? A common guide is a car price of no more than about half your annual take-home pay, with the EMI and running costs together staying under about 15-20% of monthly pay. The calculator lets you set your own limits. Is it better to pay cash for a car? Paying cash avoids interest, but don't empty your emergency fund for it. If you take a loan, a larger down payment and a shorter tenure keep the interest cost low. Should I include running costs when budgeting for a car? Yes. Fuel, insurance, servicing, parking and tolls can add up to as much as the EMI. Include them to see the true monthly cost of owning the car. ## Sources and assumptions - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.