True Cost of Car Ownership Calculator
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Runs entirely in your browser — your numbers never leave this page.
How it works
A ₹12 lakh car never costs ₹12 lakh. Over five typical years, loan interest, fuel, insurance and servicing quietly add 60–80% on top of the sticker price — and depreciation silently eats a third of the car's value.
The two numbers that matter most are cost per kilometre and cost per month. If your per-km cost is above ₹25–30, it is often cheaper to use cabs for city runs and rent for road trips. The breakeven usually sits around 12,000–15,000 km a year.
Three levers actually move the needle: a bigger down payment (kills interest), realistic mileage expectations (brochure figures are 15–20% optimistic), and holding the car longer — depreciation is steepest in years 1–3, so keeping it 7+ years spreads the biggest cost thin.
Frequently asked questions
What is the biggest hidden cost of owning a car?
Depreciation. A new car typically loses 15% in year one and ~10% yearly after. On a ₹12 lakh car over 5 years, that is roughly ₹5 lakh of silent loss — often bigger than fuel and insurance combined.
How many kilometres must I drive to justify owning?
Roughly 12,000–15,000 km a year. Below that, the fixed costs (EMI, insurance, depreciation) spread over too few kilometres and cabs usually win. This calculator shows your exact per-km figure.
Should I include the down payment in total cost?
Yes — it is cash out of your pocket. This calculator counts down payment plus all EMIs, so the total reflects real money spent, not just the loan.
Does a bigger down payment really help?
A lot. On a ₹10 lakh loan at 9.5% for 5 years, interest is about ₹2.6 lakh. Every extra lakh of down payment saves roughly ₹26,000 in interest over the tenure.
Are EVs cheaper to own?
Usually yes on running cost (₹1–1.5/km vs ₹6–8/km for petrol) but the higher purchase price and battery replacement risk change the maths. Compare both with this calculator by adjusting price, fuel and service inputs.
Why is loan EMI capped at 7 years here?
Car loans in India max out around 7 years. If you plan to own the car longer, the EMI ends but fuel, insurance and service continue — the calculator reflects that.
Should I buy new or used?
Used wins on depreciation — someone else absorbed the steepest years. The risk is maintenance: budget 30–50% higher service costs for a 4+ year old car and get it inspected before buying.
What costs are NOT included?
Parking, tolls, traffic fines, accessories and modifications. In metros, parking alone can add ₹3,000–8,000 a month — add it mentally to the monthly figure.
How does mileage affect the total?
Linearly and brutally. At 15,000 km/year, 18 km/l and ₹105/litre, fuel is ₹87,500/year. Drop to 12 km/l (city traffic, AC) and it becomes ₹1,31,250 — ₹44,000 more every year.
Is leasing cheaper than buying?
For individuals, rarely — lease rentals bundle depreciation, interest and profit margin. It can make sense for businesses claiming tax benefits. Our car buy-vs-lease calculator models that comparison directly.