What this calculation tells you
The showroom price and the EMI are only parts of the cost of using a car. This tool combines an on-road purchase price, estimated running costs and expected resale proceeds over a chosen ownership period.
The purchase price already includes the principal used to buy the car. To avoid counting it twice, the model adds only loan interest, not all EMI payments. The loan must finish within the ownership period so that this simple model does not leave an unmodelled settlement balance.
The method, explained
Net cost = purchase price + loan interest + fuel over ownership + upkeep over ownership − resale value
The inputs use the units printed beside each field. Values shown in result cards are rounded for readability; the calculator keeps more precision while applying the formula.
A worked example
On-road purchase price: ₹10,00,000.00 · Ownership period: 5 years · Distance per year: 12,000 km · Average mileage: 15 km/l · Fuel price: 105 ₹/l · Annual insurance & upkeep: ₹35,000.00 · Expected resale value: ₹4,50,000.00 · Loan principal (0 for cash): ₹8,00,000.00 · Loan annual rate: 9 % · Loan tenure: 60 months.
Estimated net ownership cost: ₹13,41,401.05
This example uses the inputs above. Your result changes when you change them.
Assumptions & limitations
- This is a before-tax cash-cost model: GST credit, depreciation deductions and income-tax effects are excluded.
- Fuel, annual distance and upkeep remain constant; price inflation, accidents and opportunity cost are not included.
- Resale value is an assumption. Only loans ending within the ownership period are supported.
Questions about this tool
Should I enter the down payment as an extra cost?
No. The on-road purchase price includes money funded by both your down payment and the loan. Only borrowing interest is added separately.
Is a company-owned car treated differently?
Not in this tool. It does not calculate business deductions, company-car benefits or tax treatment.
Published by Sanu Tech Innovation LLP · Model notes updated 30 September 2026. Read our calculation standards or report a reproducible issue.