Car & Two-Wheeler Purchase Savings Calculator India
Drive your dream car — debt-free. Know exactly how much to save each month.
Saving up for a vehicle via SIP in a low-risk mutual fund over 2–4 years lets you pay cash (or make a large down payment to minimize loan burden). With discipline, it's absolutely achievable.
Use this calculator to find the on-road price of your target vehicle (accounting for 4–6% annual price inflation), then see how much you need to save each month in a liquid or debt fund to buy it without a loan.
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How this calculator works
The calculator applies two key financial concepts: inflation adjustment and compound interest. First, it takes your goal's cost in today's money and inflates it to the future year using the inflation rate you specify (or a sensible default for your goal type). This gives you the "future rupees" target — the actual amount you'll need to pay in the future.
Then it uses the PMT formula (standard financial planning math) to calculate the monthly SIP needed to accumulate that future target, assuming your investments grow at the expected return rate. It also shows the lump-sum amount you'd need to invest today (the present value at that same return rate) as an alternative to SIP.
All calculations are in nominal (future) rupees, not real (today's) rupees. This is the correct way to plan — you need to save enough future rupees to pay the future price, not today's price.
Frequently Asked Questions
Approximate 2024 on-road prices in a metro city: Maruti Alto/S-Presso ₹5–7L, Maruti Baleno/Swift hatchback ₹8–11L, Hyundai Verna sedan ₹13–17L, Hyundai Creta compact SUV ₹13–17L, Tata Harrier SUV ₹20–25L, Toyota Fortuner ₹38–45L. Tata Nexon EV ₹16–21L.
Saving is better if you have the time (2–4 years). A car loan at 9% on ₹8 lakh over 5 years means paying ₹10.2 lakh total — ₹2.2 lakh in interest. If you can save ₹12,000–15,000/month for 3–4 years in a debt mutual fund, you can buy cash and save that interest entirely.
Scooters (Honda Activa, TVS Jupiter): ₹75,000–1 lakh on-road. Entry-level bikes (Hero Splendor, Bajaj Pulsar 125): ₹80,000–1.2L. Mid-range (Royal Enfield Meteor, Bajaj Pulsar 250): ₹1.8–2.5L. Premium (Royal Enfield Himalayan, KTM Duke 390): ₹2.5–4L.
EVs cost more upfront (Tata Nexon EV at ₹16–21L vs Nexon petrol at ₹9–14L) but fuel savings are significant: electricity at ₹8–12/kWh vs petrol at ₹100+ per litre. Over 5 years and 60,000 km, you typically save ₹2–3 lakh on fuel. Central and state subsidies (FAME II scheme) further reduce EV purchase cost.
For a 2–3 year goal: liquid funds or ultra-short duration debt funds — they return 6–7.5% with very low risk and full liquidity. For 3–4 years: short-duration debt funds or conservative hybrid funds. Avoid equity for vehicle savings — the timeline is too short to absorb market volatility.
Yes. Car manufacturers typically announce price hikes of 1–3% per quarter (4–6% annually) citing input cost increases. EV prices have been more volatile due to battery cost changes. When planning to buy in 3 years, assume the car you want today at ₹12L will cost ₹13.5–14.5L at purchase time.