How much should I spend on a car based on my salary?
A common rule of thumb is to keep your total car cost (on-road price) within 6–12 months of your annual take-home income, and car-related EMIs under 10–15% of your monthly income, after accounting for existing loans and expenses.
Does this calculator include running and maintenance costs?
Yes, the calculator factors in your income, existing expenses and loan obligations to estimate a realistic budget, not just the EMI, so ongoing running costs don't strain your monthly cash flow.
Should I buy a car with a loan or pay cash?
It depends on your opportunity cost — if your investments can earn more than the car loan's interest rate, financing part of the purchase while investing the rest can make sense. Otherwise, minimising loan interest with a larger down payment is usually safer.