Buying a car is exciting—but also a major financial commitment. In 2025, hatchbacks in India start at around ₹4.23 lakh, while sedans and SUVs can easily cross ₹10 lakh. On top of the sticker price, you’ll need to factor in loan EMIs, insurance, fuel, and maintenance. Even with attractive car‑loan rates now as low as 8.15% p.a. for electric vehicles and 8.30% for petrol cars, monthly payments can stretch your budget if you don’t plan carefully .
A clear Excel template helps you see the full picture—so you know exactly how much car you can afford without financial stress. Let’s dive in and build your personalized car‑budget calculator.
1. Key Factors in Your Car Budget
Before opening Excel, gather these real‑world numbers:
- Ex‑Showroom Price: Hatchbacks start at ₹4.23 lakh; popular models (Tata Altroz, Maruti Swift) hover around ₹6.5–7 lakh.
- On‑Road Price Add‑Ons: Include RTO registration (~10% of ex‑showroom), insurance (~3–4%), and handling charges (₹10,000–₹15,000).
- Down Payment: Aim for 20–30% of on‑road price to lower your loan amount.
- Loan Interest Rate: As of June 2025, banks offer 8.15–9.40% p.a. for new‑car loans; SBI’s EV loans start at 8.15%, non‑EV at 8.30% .
- Tenure: Typical tenors range 3–7 years—longer tenures cut EMI but raise total interest.
- Monthly EMI Rule: Keep EMIs below 15–20% of your net monthly income to stay comfortable.
- Fuel Cost: Petrol in Delhi is about ₹94.72/litre; SUVs will cost more, smaller cars less .
- Maintenance & Running: Budget ₹2,000–3,000 per month for servicing, tires, and parking.
With these in hand, you can populate an Excel sheet to see your true monthly cost of ownership.
2. EMI Affordability: A Simple Rule of Thumb
Financial planners recommend EMIs not exceed 15–20% of take‑home pay. For example, if your net salary is ₹50,000, aim for car EMIs of ₹7,500–10,000 maximum. Going higher strains your budget and forces cuts on essentials or savings goals.
Why 20%? At 9% p.a. over 5 years, a ₹10 lakh loan carries an EMI of about ₹20,750. On a ₹50,000 income, that’s 41%—well above safe levels . Dropping loan to ₹4 lakh yields roughly ₹8,300 EMI—just 16.6% of income.
This rule guides your maximum loan amount and thus your car price ceiling.
3. Building Your Excel Template: Step by Step
Open a new Excel workbook and set up these columns in Row 1:
| A | B | C | D | E | F | G | H | I |
| Item | Ex‑Showroom | On‑Road | Down % | Loan % | Rate % | Tenure (yrs) | EMI (₹) | Monthly Fuel (₹) |
3.1 Enter the Inputs (Rows 2–3)
- Row 2 (“Your Car”)
- B2: Pick a model’s ex‑showroom price (e.g., 6,89,000 for Tata Altroz).
- C2: C2 = B2 * 1.10 (adds 10% for RTO) + 25,000 (estimate insurance & handling).
- D2: Enter down‑payment % (e.g., 25%).
- E2: =100% – D2 (loan %).
- F2: Choose interest rate (e.g., 9.10%).
- G2: Enter tenure in years (e.g., 5).
- B2: Pick a model’s ex‑showroom price (e.g., 6,89,000 for Tata Altroz).
- Row 3 (“Budget Example”)
- Use your maximum car budget (e.g., 5,00,000) and follow the same formulas to see what EMI that implies.
- Use your maximum car budget (e.g., 5,00,000) and follow the same formulas to see what EMI that implies.
4. Adding Formulas
In H2 (EMI), use Excel’s PMT function:
=PMT(F2/12, G2*12, -C2*E2/100)
- F2/12: Monthly rate
- G2*12: Total months
- -C2*E2/100: Negative loan principal
Copy H2 down to H3.
In I2 (Fuel), estimate monthly fuel cost:
= (Average Monthly km Driven / Fuel Efficiency) * Fuel Price
For example, if you drive 1,000 km/mo, your car delivers 15 km/l:
= (1000 / 15) * 94.72
You can put “1000” in a helper cell and “15” in another, then reference them.
5. Calculate Total Monthly Ownership Cost
Add two more columns J and K:
| J | K |
| Maintenance (₹) | Total Monthly Cost (₹) |
J2: Estimate maintenance (~₹2,500).- K2: =H2 + I2 + J2.
This sum tells you exactly what owning that car will cost each month.
6. Interpreting the Results
- Compare EMIs to Income: If H2 exceeds 20% of your net pay, consider a lower‑priced car or bigger down payment.
- Total Cost vs. Income: K2 should ideally be under 25–30% of take‑home, leaving room for savings and other expenses.
- Adjust Inputs: Play with down % and tenure: increasing down payment by 5% or extending loan by a year can cut EMIs notably—but beware total interest up.
7. Sample Table
| Item | Ex‑Showroom | On‑Road | Down % | Loan % | Rate % | Tenure (yrs) | EMI (₹) | Fuel (₹) | Maint (₹) | Total (₹) |
| Your Car | 6,89,000 | 7,61,900 | 25% | 75% | 9.10% | 5 | 13,588 | 6,315 | 2,500 | 22,403 |
| Budget Car | 5,00,000 | 5,50,000 | 30% | 70% | 9.40% | 7 | 8,521 | 6,315 | 2,500 | 17,336 |
Insight: The ₹6.89 lakh car costs ₹22,400/mo, nearly half a ₹50,000 salary. The ₹5 lakh option fits better at ₹17,300/mo.
8. Refining Your Budget
- Loan Tenure: Stretching from 5 to 7 years cuts EMI but increases total interest by ~15%.
- Down Payment: Each 5% extra down payment cuts EMI by ~8%.
- Car Choice: A smaller hatchback (₹5 lakh) saves ₹5,000–₹7,000 in EMI alone.
- Fuel Efficiency: A 20 km/l diesel or CNG variant can halve fuel outgo.
Use your Excel model to test these “what‑if” scenarios until your total cost lines up with your cash flow.
9. Beyond the Excel: Other Ownership Costs
- Depreciation: Cars lose 15–20% of value in year 1 and 10% annually thereafter—factor in resale value if you plan to upgrade.
- Insurance Renewal: Premiums rise ~5–8% annually—plan for increments in your maintenance line.
- Parking & Tolls: Urban drivers can spend ₹1,000–₹2,000 per month—add these into your “Maintenance” cell if relevant.
- Accessories & Upgrades: Budget separately for infotainment, seat covers, or alloy wheels—Excel can include an “Extras” column if you wish.
10. Final Tips for a Sound Budget
- Stick to the Numbers: Don’t let showroom glamor push you beyond your comfort zone—use your Excel “hard limits.”
- Pre‑Approval: Secure a loan sanction letter at your desired rate and EMI before car hunting.
- Emergency Cushion: Ensure you have 3 months of expenses saved—so car EMIs never force you into high‑cost borrowing.
- Revisit Annually: As your income grows or expenses change, update your template to see if you can afford an upgrade or need to downsize.
Conclusion
A car is more than an upfront price tag. Your true cost of ownership includes EMIs, fuel, maintenance, insurance, depreciation, and unexpected charges. By building a simple Excel template with the steps and formulas above—and filling it with real data like ₹94.72/liter petrol , 8.15–9.40% car‑loan rates , and ₹4.23–7 lakh ex‑showroom prices—you’ll gain clarity on exactly how much car you can afford. Plug in different scenarios, compare models, and make a confident decision that fits your budget—not your impulses.
Happy car‑shopping!
Source : thepumumedia.com