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Car Down Payment Calculator

Saving for the down payment keeps a car loan smaller and its EMI lower. Enter the on-road price of the car today, when you plan to buy and how much you will pay upfront, and the calculator shows the cash you will need, the monthly SIP to save it and the EMI on the rest.

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Calculator and results

A car costing ₹10,00,000 on the road today could cost about ₹11,24,864 in 3 years, so a 20% down payment is ₹2,24,973. At an assumed 7% return that takes a monthly SIP of ₹4,077. The ₹8,99,891 loan at 9% over 5 years means an EMI of ₹18,680.

₹

Include registration, road tax and insurance.

%

An assumption to test.

yrs
%

Check how much of the price your lender will fund.

%

An example figure. Enter the rate a lender quotes you.

yrs
%

An assumption. For a purchase a few years away, a lower-risk mix is common.

₹

Required monthly SIP

₹4,077

for 3 years

Cash needed at purchase

₹2,24,973

20% down payment

Car price then

₹11,24,864

₹10,00,000 today

EMI after purchase

₹18,680

on a ₹8,99,891 loan

Total loan interest

₹2,20,909

over 60 months

Or a lumpsum today

₹1,33,645

one-time, on top of savings

Paying for the car

Total₹11.25 L
Down payment
20%
₹2,24,973
Car loan
80%
₹8,99,891

Compare lenders before you buy: see car loan interest rates and the car loan EMI calculator.

SIP path to the purchase
After 3 years: put in ₹1,96,772, down payment fund ₹2,24,997.₹0₹1 L₹2 L₹3 L0123
Year 3Put in ₹1.97 LGrowth ₹28.22 KDown payment fund ₹2.25 L
Year by year
Year by year
YearPut in to dateDown payment fund
1₹98,924₹1,04,319
2₹1,47,848₹1,62,557
3₹1,96,772₹2,24,997

Saved scenarios stay in this browser only. No sign-up.

Required monthly SIP

₹4,077

EMI later ₹18,680
What it is:
A savings planner for the down payment on a car, with the loan EMI that follows.
What it calculates:
The car's future price, the down payment, the monthly SIP or lumpsum to save it, the loan amount and the EMI after purchase.

Key Assumptions

  • The car's price rises at a constant yearly rate you choose.
  • Savings and the SIP grow at a constant expected return; SIP instalments are invested at the start of each month.
  • The loan rate is the one you enter; processing fees and insurance are not included.
  • The EMI is rounded to the nearest rupee.

How does the Car Down Payment Calculator work?

The on-road price today is grown at the yearly price rise you enter to the year you plan to buy. Car prices change with models, taxes and costs, so the rise is an assumption to test.

The down payment is your chosen percentage of that future price. The rest is the car loan.

Savings already set aside are grown at the expected return and subtracted, and the monthly SIP for the rest is solved with the same start-of-month convention as our SIP calculator, rounded up to the next rupee.

The EMI on the loan is worked out with the standard reducing-balance formula used by our car loan EMI calculator, at the interest rate and tenure you enter. Check current rates with lenders; the rate you are offered depends on your profile.

Car Down Payment Calculator formula

Down payment = P x (1 + g)^t x d; EMI = L x i x (1 + i)^n / ((1 + i)^n - 1)

P
= on-road price today
g
= price rise per year, as a decimal
t
= years until you buy
d
= down payment as a share of the price
L
= loan = future price - down payment
i
= monthly loan rate = annual rate / 12 / 100
n
= loan tenure in months

Required SIP = (Down payment - savings x (1 + r)^t) / ([((1 + j)^m - 1) / j] x (1 + j)), with j = expected return / 12 and m = t x 12.

Car Down Payment Calculator: worked example

A ₹10,00,000 car bought in 3 years, ₹50,000 already saved, example loan rate 9%

Price after 4% a year
₹11,24,864
Down payment (20%)
₹2,24,973
Savings grown at 7%
₹61,252
Required monthly SIP
₹4,077
Car loan
₹8,99,891
EMI over 60 months
₹18,680

Car Down Payment Calculator: frequently asked questions

How much down payment should I make on a car?
Lenders set their own limits on how much of the car's price they will fund, and the share can depend on the model and your profile. A larger down payment means a smaller loan, a lower EMI and less interest. Check the lender's current terms before you plan.
Should I use the ex-showroom or the on-road price?
The on-road price, which includes registration, road tax and insurance, is what you actually pay. Lenders often fund a share of the ex-showroom or on-road price depending on their policy, so the cash you need can be higher than the down payment alone.
What return should I assume for a car fund?
A car purchase is usually one to five years away, so a lower-risk mix such as a recurring deposit, debt fund or short-term FD is common. A lower return raises the SIP, but protects you from a market fall just before you buy.
Is it better to pay cash than take a loan?
Paying cash avoids interest entirely, but uses savings you may need for other goals. Compare the total interest shown here with what your money would earn if left invested.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated