Find the monthly investment needed to buy a car without a loan - and save on interest.
Monthly SIP needed
₹28,823
per month for 3 years at 7% p.a.
Projections assume a constant return of 7% p.a. Mutual fund returns vary and are not guaranteed.
A car is a depreciating asset - it loses value the moment you drive it out of the showroom. Taking a car loan at 9-12% interest to buy something that depreciates 15-20% in the first year is one of the most expensive financial decisions most Indians make. The better approach: save aggressively for 2-3 years in a short-term debt fund or liquid fund, then buy the car outright. This calculator shows you exactly how much to invest monthly to hit your car budget - and you avoid paying ₹1.5-3 lakh in interest.
For a 3-year car goal, we use a conservative 7% return - appropriate for liquid funds, ultra-short-term debt funds, or recurring deposits that won't lose value in a short-term market dip.
Monthly SIP = Target × r / [(1+r)^n − 1] / (1+r)
Car prices in India tend to rise ~5% per year (new models + import costs), so inflation adjustment is on by default. Adjust the goal amount to your specific car budget.
Saving is almost always better. A ₹10L car loan at 10% for 5 years costs ₹2.75L in interest - plus you pay insurance on a depreciating asset throughout. If you can delay 3 years and save ₹22,000/month at 7%, you'll have ₹10L to buy the same car without any interest cost. The only exception: if you genuinely need the car immediately for work or family needs.
For a 1-2 year horizon, use only liquid funds or FDs (6-7%). Equity is too volatile for a 1-year goal - a 20% market drop would reduce your corpus significantly right when you need it. Set the expected return to 6-7% in the calculator.
Yes - save for the on-road price, which includes ex-showroom price + registration + insurance + accessories. On-road price is typically 15-20% higher than the ex-showroom sticker price. For a ₹10L ex-showroom car, budget ₹11.5-12L.
Yes - an RD at a bank or post office is completely safe and gives ~6.5-7% returns. The downside: RD interest is taxable as per your income slab. A liquid mutual fund (which also targets ~7%) is more tax-efficient if you are in the 30% bracket, since you control when you redeem.
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