Affordability Calculator

Affordability Calculator

Check your affordability before you go any further with a vehicle purchase.

Affordability Calculator

Affordability Calculator

Looking for a car? Droom tells you how much to spend on EMI deducting all your monthly expenses.
Please Enter Your Expenditure Details
Enter Your Salary
Please Enter Your Loan Details
Select Re-Payment Tenure
Enter Interest Rate

 

Your Affordability

* 80% of Ex-Showroom Price is considered as Loan Amount to Calculate Car Price Limits

What is Affordability Calculator?

Affordability Calculator helps any user check the affordable price and EMI range at which he/ she can buy a vehicle based on the income and expenditures entered by the user on a monthly basis.

How it works?

Step 1

Enter monthly income

Step 2

Enter monthly expenditures under different buckets.

Step 3

Submit to calculate the affordable EMI and Price Range.

Affordability Calculator Methodology:

Affordability calculator takes the user’s monthly income and expenses as inputs and performs the following calculation.

  1. Disposable income is calculated: Monthly income minus Monthly expenditures.
  2. Takes the repayment tenure entered by the user, during which the user has planned to repay the loan.
  3. Takes the interest rate at which the user is availing the loan.
  4. Calculates a percentage of disposable income to determine the affordable EMI and Price Range
  5. Calculates the Affordable EMI range
  6. Calculates the sum borrowed with the EMI range
  7. Multiplies the sum borrowed by 120 to obtain the affordable price range of the vehicle. (Considering that banks provide loan up to a maximum of 80% of the price of the vehicle)

Affordability Calculator FAQs

  1. What is Disposable Income?

    The balance money left with any individual post deducting the recurring monthly expense from the monthly income.

  2. What is EMI?

    EMI is the acronym of equated monthly instalments. This is the amount of money which any individual has to repay every month for the sum of money borrowed from bank or any financial institution as loan over the tenure of repayment of the loan. Every EMI will cover both principle and interest components.

  3. Why is Price of the vehicle always greater than the sum borrowed as loan?

    Banks and financial provide a maximum financial assistance of up to 80% on the price of the vehicle. Hence Loan will correspond only to 80% of the price of the vehicle.