When does owning a car make sense?

When frequent travel makes cab costs higher than EMI, fuel, insurance, and maintenance combined.

What does owning a car really cost?

The loan or down payment, fuel, insurance, servicing, parking and the value the car loses each year.

Is a cab cheaper than owning a car in India?

Often yes for light use. The more you drive each month, the more owning pays off; the calculator compares both at your monthly distance.

Rent vs Own Car Calculator

A rent vs own car calculator compares your monthly cab cost with the estimated monthly cost of owning a car. Enter the kilometres you travel a month, the cab cost per km and the car price.

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How the Rent vs Own Car Calculator works

The cab cost is your monthly kilometres times the cost per km.

The owned-car cost is the car price spread evenly over 5 years as depreciation, plus about ₹4 a km for fuel and maintenance.

It is a rough guide. It leaves out insurance, parking, loan interest and the car's resale value.

Formula

Own = price ÷ 60 + km × ₹4; Cab = km × cab rate; break-even km = (price ÷ 60) ÷ (cab rate − ₹4)

price ÷ 60 = depreciation per month over 5 years
₹4 a km = fuel and maintenance (the tool's estimate)

Worked example: ₹9 lakh car, 1,200 km a month, cabs at ₹12 a km

Depreciation = ₹9,00,000 ÷ 60 = ₹15,000 a month.
Running cost = 1,200 km × ₹4 = ₹4,800, so owning costs about ₹19,800 a month.
Cabs cost 1,200 × ₹12 = ₹14,400 a month.
Owning wins only above about 1,875 km a month at these numbers.

₹9 lakh car vs cabs at ₹12 a km, monthly cost
Km a month	Cabs	Own car (est.)	Cheaper
500	₹6,000	₹17,000	Cabs
1,000	₹12,000	₹19,000	Cabs
1,500	₹18,000	₹21,000	Cabs
2,000	₹24,000	₹23,000	Own
3,000	₹36,000	₹27,000	Own

Illustrative, assuming a constant rate. Actual returns and rates vary.

Tips

Use your real monthly kilometres from the last few months, not a guess.
Depreciation is a cost even when you pay cash for the car.
Add insurance and parking to the owned-car side for a fuller picture.
If you buy, keep the price within your budget using the car loan or when-to-buy calculators.

Want to know if your whole plan is on track? Get your free money score in about two minutes. No PAN, no Aadhaar.

About the Rent vs Own Car Calculator

Free rent vs own car calculator. Compare your monthly cab or rental cost with the full cost of owning a car: loan, fuel, insurance and upkeep.

Frequently asked questions

When does owning a car make sense?: When frequent travel makes cab costs higher than EMI, fuel, insurance, and maintenance combined.
What does owning a car really cost?: The loan or down payment, fuel, insurance, servicing, parking and the value the car loses each year.
Is a cab cheaper than owning a car in India?: Often yes for light use. The more you drive each month, the more owning pays off; the calculator compares both at your monthly distance.

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