Car Purchase Goal Planner

Use the on-road price, not the ex-showroom price. The on-road price includes registration, road tax, insurance and any accessories you plan to add, and it can be noticeably higher than the showroom figure.

Yes. If you plan to take a car loan, enter the down payment you want to make, for example 20% of the on-road price, as the cost. The calculator will show how much to save each month to have that amount ready.

Subtract the resale or exchange value you expect from the cost of the new car, and enter the difference. Don't add it to what you've saved, because that money only arrives when you buy the new car and won't grow before then.

Car prices tend to rise over time with general inflation (opens in new tab), new safety and emission rules, and model updates. The default of 6% a year is a reasonable middle assumption. Choose a higher rate if you want to be on the safe side, or if you're considering a model that's likely to be upgraded.

It's the share of your savings in equity, such as stocks and equity mutual funds. The rest is assumed to be in safer options like FDs and debt funds. Equity is assumed to grow 12% a year and safer investments 6% a year. Drag the slider to match how your money is actually invested.

Equity can fall sharply over short periods, and a car purchase has a fixed date. The shorter your timeline, the less time your money has to recover from a fall, so the planner scales your risk profile back for a near-term purchase, even if you set it higher.

• Under 3 years. None of your money is treated as equity, whatever you set. It is assumed to sit in liquid funds earning 6% a year.
• 3 to 5 years. Half the equity you set. A Balanced 50% becomes 25%, which works out to 7.5% a year.
• 6 years and over. The full amount you set. A Balanced 50% stays 50%, which works out to 9% a year.

Your result shows which band you are in, the equity share it leaves you with and what that earns, under "How the projection is built".

Many people move their savings into safer options like FDs or liquid funds in the last year or two before buying. A market fall just before you buy would leave you short, and the calculator's steady return doesn't show that risk.

You can wait a little longer, choose a less expensive model, make a smaller down payment with a larger loan, or raise your saving each year. The calculator shows how long it would take if you keep saving as you are, and you can move the sliders to find a mix that works.

Our SIP calculator shows what any monthly amount could grow to

No. It assumes you save the same amount every month. If you raise your saving as your income grows, you can start with a smaller extra amount than the one shown.

No. Results are shown before tax. Gains are taxed when you redeem, and the rate depends on the type of investment and how long you've held it. Check the current rules or speak to a tax adviser, and aim a little higher if you need the full amount in hand.

No. Nothing you enter in this car purchase planner is stored.