Tool 02 · True Cost of Ownership
What this car you
An ownership model for however long you plan to keep the car — not an EMI calculator. It nets down payment, interest, driver, fuel, insurance and resale, then shows the same car through two lenses: a personal buyer, and a business owner claiming legitimate tax benefits.
Your inputs
The only editable fields. Everything below recalculates live.
Ownership period
How long do you plan to
This is how long you plan to keep the car. It may be shorter or longer than the loan tenure — the two are separate inputs. If you sell before the loan ends, the remaining loan balance must be paid from the sale proceeds or by you.
This is how long you plan to keep the car. It may be shorter or longer than the loan tenure.
Ex-showroom + road tax + insurance + registration.
Share of on-road price paid upfront.
Reducing-balance rate quoted by the lender.
How long the loan runs. Separate from ownership period — if you sell before the loan ends, the remaining balance must be paid from the sale proceeds or by you.
Share of on-road price you expect to realise after 3 years.
Set to 0 if you drive yourself.
Monthly fuel or charging spend.
Comprehensive insurance plus scheduled maintenance.
Marginal rate applied to business deductions.
Written-down-value rate. Default 15% for motor cars.
Default 30%. Used for the income needed to service the EMI.
Default 35%. Used for the income needed to carry the long-term ownership cost.
Ownership period
Monthly EMI
₹1.33 L
Gross resale value after 3 years
₹46.75 L
Outstanding loan at sale
₹29.06 L
Net resale cash
₹17.69 L
Total tax benefits over 3 years
₹20.07 L
Net ownership cost over 3 years
Effective monthly cost
₹2.01 L
Derived values
Auto-calculated from your inputs.
Down payment
₹21.25 L
Loan amount
₹63.75 L
Monthly interest rate
0.771%
Loan tenure
60 months
Ownership period
36 months
Monthly EMI
Total EMI paid (36 mo)
₹47.92 L
Interest paid over 3 years
₹13.23 L
Principal repaid over 3 years
₹34.69 L
Outstanding loan at sale
₹29.06 L
Gross resale value after 3 years
₹46.75 L
Net resale cash after loan closure
EMIs actually paid inside the ownership window: 36 of 60. The loan is not fully repaid at sale — ₹29.06 L is cleared out of the resale proceeds.
Income & EMI Capacity
Estimate what monthly EMI you can carry before locking the loan.
Enter your take-home monthly salary or net household income.
Include home loan, personal loan, credit card EMIs, and other regular debt payments.
Read-only estimate.
Enter your income and existing EMIs to see your affordable car EMI range.
As a rule of thumb, your total monthly EMIs (home + car + personal loans + credit cards) should not exceed 30–40% of your after-tax income. Use this to estimate a comfortable car EMI before choosing your loan size and tenure.
Total outflows over 3 years
Every rupee that leaves your account. Identical for both profiles.
Interest and principal are shown for transparency only — they are already inside the total EMI and are not added again to the total outflow.
Total inflows over 3 years
What comes back to you. This is where the two profiles separate.
Personal User
No tax benefitsBusiness Owner
Deductions may applyDepreciation is claimed on written-down value at 15% a year, so ₹33L of the car's value is written off across 3 years before tax. Eligibility depends on genuine business use — confirm with your CA.
| Year | Opening WDV | Depreciation @ 15% | Closing WDV |
|---|---|---|---|
| Year 1 | ₹85.00 L | ₹12.75 L | ₹72.25 L |
| Year 2 | ₹72.25 L | ₹10.84 L | ₹61.41 L |
| Year 3 | ₹61.41 L | ₹9.21 L | ₹52.20 L |
The verdict
Net cost of 3 years of ownership, after everything.
Personal User
Net ownership cost over 3 years
₹72.36 L
Effective monthly cost
₹2.01 L
Income required for EMI
₹4.44 L
Income for effective cost
₹5.74 L
Business Owner
Net ownership cost over 3 years
Effective monthly cost
₹1.45 L
Income required for EMI
₹4.44 L
Income for effective cost
₹4.15 L
| Metric | Personal user | Business owner | Difference |
|---|---|---|---|
| Total tax benefits over 3 years | ₹0 | ₹20.07 L | +₹20.07 L |
| Net ownership cost over 3 years | ₹72.36 L | ₹52.29 L | −₹20.07 L |
| Effective monthly cost | ₹2.01 L | ₹1.45 L | −₹55,760 |
| Monthly income required for EMI | ₹4.44 L | ₹4.44 L | — |
| Monthly income required for effective cost | ₹5.74 L | ₹4.15 L | −₹1.59 L |
Bottom line
A business owner could save over 3 years
That is 27.7% of the personal buyer's net cost — roughly ₹55,760 a month, from depreciation, interest and running-cost deductions at a 30% marginal rate. These are modelled figures, not guaranteed savings.
Your report
Download a clean, printable summary
An A4 report with your inputs, finance summary, ownership cost, the personal vs business comparison and the final verdict. Generated on your device — nothing is uploaded or stored.
Used only to grade affordability as Comfortable, Stretch or High Financial Risk.
Methodology
Every formula behind the numbers above.
Down payment
On-road price × down payment %
Loan amount
On-road price − down payment
Monthly interest rate
Annual interest rate ÷ 12
Loan tenure months
Loan tenure years × 12
Ownership period months
Ownership period years × 12
Monthly EMI
Standard reducing-balance formula on loan amount, monthly rate and loan tenure months
Total EMI paid
Monthly EMI × min(ownership months, loan tenure months)
Outstanding loan at sale
Remaining principal after the EMIs paid during ownership; zero if ownership outlasts the loan
Principal repaid
Loan amount − outstanding loan at sale
Interest paid
Total EMI paid − principal repaid
Gross resale value
On-road price × expected resale %
Net resale cash
Gross resale value − outstanding loan at sale
Total outflow
Down payment + total EMI paid + driver + fuel + insurance/service over the ownership period (interest and principal are inside the EMI, never added twice)
Total inflow
Net resale cash + total tax benefits
Depreciation
Year-by-year WDV: opening WDV × rate; closing WDV = opening − depreciation. A part-year is prorated by months held
Tax benefits
Eligible depreciation, interest, driver, fuel and insurance/service × tax bracket
Net ownership cost
Total outflow − total inflow
Effective monthly cost
Net ownership cost ÷ ownership period months
Income required for EMI
Monthly EMI ÷ 30%
Income required for effective cost
Effective monthly cost ÷ 35%
Tax disclaimer · consult your CA
Tax benefits shown are illustrative, not guaranteed savings. Actual eligibility depends on genuine business use, ownership structure, books of account, the tax regime you are under, documentation and applicable Indian tax rules — and can be disallowed on scrutiny. Confirm every deduction with your Chartered Accountant before relying on these numbers.