Personal Finance

True Cost of Car Ownership

Car showrooms only sell you the EMI. Calculate the shocking true monthly cash drain of owning a car including fuel, insurance, and maintenance.

Financing
5 Years
Running & Maintenance
True Monthly Cash Drain

Total Monthly Cost

₹31,592

This money leaves your bank every month.

Cost Breakdown

EMI (Fixed)₹20,758
Fuel Cost₹7,500
Insurance (Monthly Amortized)₹2,083
Service (Monthly Amortized)₹1,250

The Danger of the "EMI Illusion"

  • Showroom Deception: Car salesmen are trained to negotiate purely on the EMI. If your budget is ₹20,000/mo, they will stretch your loan to 7 years to make a ₹15 Lakh car "fit" your EMI budget. They never mention the true cost.
  • The Invisible Drain: A car with an EMI of ₹15,000 will easily consume another ₹7,000 in fuel, ₹2,000 in insurance, and ₹1,500 in servicing every month. Your actual cash outflow is closer to ₹25,500/month.
  • Depreciation (The Silent Killer): This calculator doesn't even factor in depreciation! A ₹12 Lakh car loses ₹1.2 Lakhs of value the minute you drive it out of the showroom (10%). Over 5 years, it loses 50% of its value. That is an invisible loss of ₹10,000 per month in net worth.