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The 20/4/10 rule suggests putting 20% down, financing for no more than 4 years, and keeping total transport costs under 10% of gross income. It stops a car from squeezing the rest of your budget.
Enter your income, what you already spend on transport, the interest rate and the loan term to see how much car you can afford.
| Annual Income | ₹1,200,000 |
| Insurance + Fuel + Maintenance (est.) | 3,000 ₹/mo |
| Expected Interest Rate | 9% |
| Loan Term | 4 yrs |
| Car you can afford (20/4/10 rule) | ₹3.52 lakh |
| Down payment (20%) | ₹70,323 |
| Car loan | ₹2.81 lakh |
| Maximum car EMI | ₹7,000 a month for 4 years |
| Total transport budget (10% of income) | ₹10,000 a month |
| Simple thumb rule: car price ≤ half your yearly income | ₹6 lakh |
Car you can afford ₹3.52 lakh; EMI ₹7,000 a month for 4 years.
Try this example →| Annual Income | ₹800,000 |
| Insurance + Fuel + Maintenance (est.) | 2,500 ₹/mo |
| Expected Interest Rate | 9% |
| Loan Term | 4 yrs |
| Car you can afford (20/4/10 rule) | ₹2.09 lakh |
| Down payment (20%) | ₹41,859 |
| Car loan | ₹1.67 lakh |
| Maximum car EMI | ₹4,167 a month for 4 years |
| Total transport budget (10% of income) | ₹6,667 a month |
| Simple thumb rule: car price ≤ half your yearly income | ₹4 lakh |
Car you can afford ₹2.09 lakh.
Try this example →| Annual Income | ₹2,500,000 |
| Insurance + Fuel + Maintenance (est.) | 5,000 ₹/mo |
| Expected Interest Rate | 9% |
| Loan Term | 5 yrs |
| Car you can afford (20/4/10 rule) | ₹9.53 lakh |
| Down payment (20%) | ₹1.91 lakh |
| Car loan | ₹7.63 lakh |
| Maximum car EMI | ₹15,833 a month for 5 years |
| Total transport budget (10% of income) | ₹20,833 a month |
| Simple thumb rule: car price ≤ half your yearly income | ₹12.5 lakh |
Car you can afford ₹9.53 lakh.
Try this example →Loan payment, fuel, insurance, parking and maintenance together.
Cars lose value quickly. A short loan keeps you from owing more than the car is worth.
Then the room for a car payment shrinks, and the calculator will show a lower price or none.
Pay at least 20% down, take a loan of no more than 4 years, and keep EMI plus fuel, insurance and service under 10% of gross income.
About ₹2.5–4 lakh by the strict 20/4/10 rule, depending on your fuel and insurance costs; a looser rule of thumb is up to half your yearly income (₹5 lakh).
Yes — the 20/4/10 rule is the same everywhere; just enter amounts in your own currency.