đźš— Car Affordability Calculator

Wondering how much car you can actually afford without hurting your monthly budget? You're not alone. With rising costs and tempting EMIs, it's easy to overspend. That’s why we built this simple yet powerful Car Affordability Calculator - to help you make smart, stress-free decisions. Just plug in your income, expenses, and loan preferences, and we’ll tell you the car price you can truly afford. No jargon. No guesswork. Just clarity.

đźš— Car Affordability Calculator

60 months
10%

âś… Explainer of the Calculation

🧠 How This Calculator Works – Explained Simply

We get it – finance math can feel overwhelming. Here’s how our Car Affordability Calculator actually works behind the scenes:

1. It starts with your Monthly Income and Expenses.

We subtract your expenses from your income to find your savings—because that’s what you could potentially spend on a car loan each month.

Monthly Savings = Income - Expenses

2. We calculate a safe EMI budget.

To stay financially healthy, we assume only 20% of your savings should go toward a car EMI. That way, you still have room for emergencies and fun.

Max EMI (Monthly Car Loan Payment) = Monthly Savings Ă— 20%

3. We use your EMI budget to find the Loan Amount.
Using your selected loan term (in months) and interest rate, we reverse-calculate the loan amount you could get from a bank.

This is done using a standard EMI formula:

Loan Amount = [EMI Ă— (1 - (1 + r)^-n)] / r

Where:

  • r = monthly interest rate

  • n = loan term in months

4. Finally, we add your Down Payment.
The total car price you can afford is:

Affordable Car Price = Loan Amount + Down Payment

âś… Why This Matters

Instead of falling into the trap of thinking “If the EMI fits, it’s fine,” this calculator helps you prioritize financial wellness. You’ll avoid hidden costs, surprise stress, and loans you can’t handle later.