Owning a car has visible costs (EMI, fuel, insurance) and hidden ones (depreciation, maintenance, parking, opportunity cost on down payment). For city dwellers especially, taking cabs and the occasional rental can be cheaper. This calculator does the honest comparison.
What is Car vs Cab?
The total cost of car ownership has 7-8 components: EMI (or down payment opportunity cost), fuel, maintenance, insurance, registration, parking, depreciation, and resale recovery. The total is typically ₹10-25 per kilometre depending on the car. Cab fares (Ola/Uber) are around ₹15-25 per kilometre in Indian metros.
If you drive less than 50km/day, cabs often win on pure cost. The break-even point shifts based on cab availability, baggage needs, family size, public transport access, and emotional value of ownership. The calculator gives you the rupee answer; lifestyle factors are yours to weigh.
How the comparison is calculated
Car path: monthly EMI + fuel cost (km/month × ₹/litre / mileage) + insurance/12 + maintenance/12 + parking + depreciation/12. After the loan period, EMI drops out but fuel + maintenance + insurance continue, and depreciation continues until resale.
Cab path: total km/month × ₹/km cab rate. Plus occasional rental for trips beyond cab range (assumed monthly cost).
Calculator outputs the monthly cost difference and the break-even km/month at which both options cost the same.
- EMI
- Monthly loan—from emi calculator on car loan amount + rate + tenure
- Depreciation
- Asset wear—(price − resale) / years of ownership
How to use this calculator
Enter the car's on-road price
Includes ex-showroom + RTO + insurance + accessories. Don't use ex-showroom alone.
Set financing details
Down payment (typically 20%), loan rate (8-13% for cars), tenure (3-7 years). The EMI is computed using standard reducing-balance.
Enter your monthly driving
Be honest about actual usage. Many car owners overestimate by 30-50% — track for a week if unsure.
Set fuel and mileage assumptions
Petrol price in your city (₹100-110/L typical 2026), realistic mileage (12-15 km/L for sedans, 8-10 km/L for SUVs in city traffic). Use realistic city mileage, not highway figures.
Read monthly cost comparison
Calculator shows car cost/month, cab cost/month, and break-even km/month. The break-even helps you decide — if you drive far above it, car wins; below it, cab wins.
When to use it
First-time car purchase decision
Run the calculator with realistic monthly km. If your driving is under 1,000 km/month, cab is almost always cheaper for a typical sedan. The cost gap can be ₹5,000-10,000/month going to cabs.
Sell-the-car decision
If you already own a car but rarely drive, calculator helps quantify the saving from selling and switching to cabs. Often ₹15,000-25,000 monthly saving for low-usage owners.
Second car decision
Adding a second car for a working spouse or kid is often the worst case — full cost of ownership for low usage. Calculator typically shows cab + occasional rental dominates by ₹15,000+ monthly.
Common mistakes to avoid
Forgetting depreciation in cost calculation
Cars depreciate 15-20% in year 1 and ~10% annually after. Over 5 years that's roughly half the price. Add depreciation to monthly cost — it's the biggest hidden component.
Underestimating monthly km
Track actual driving for a week using your odometer or Google Maps timeline. Most people drive 30-50% less than they think. Be honest in the calculator input.
Forgetting cab + monthly rental for road trips
If you'd take 2-3 road trips a year using the car, cab path needs car rental for those days. Factor ₹2,000-5,000/month average for rentals in the cab cost.