"Should you pay more upfront for better mileage, or save on the car price and pay more for fuel?"
Buying a car in India has evolved beyond simple mileage calculations ("Kitna deti hai?"). With the government pushing Electric Vehicles (EVs) and the rising popularity of CNG, Indian buyers face a complex dilemma:
- EVs: Extremely low running cost (₹1/km) but massive upfront premium.
- CNG: Great mileage, but compromises boot space and increases maintenance and slightly higher price than corresponding petrol version.
- Petrol (ICE): Lowest upfront cost, but highest fuel expense.
Most online calculators are misleading because they only calculate Simple Payback Period (Fuel Savings vs. Extra Cost). They ignore the most critical factor in wealth creation: Opportunity Cost.
CarsCalc was built to solve this. It is a financial modeling tool that calculates the Total Cost of Ownership (TCO) by factoring in Inflation, Investment Returns, and Maintenance differentials.
This tool runs a professional financial model in your browser. Here is the logic breakdown:
When you spend an extra ₹4 Lakhs to buy an EV over a Petrol car, you are not just spending that money—you are losing the ability to invest it.
- If you bought the cheaper Petrol car and invested that ₹4 Lakhs in a Mutual Fund (SIP) at 12%, it would double in 6 years.
- This calculator treats that "Lost Potential Growth" as a cost to the EV.
Saving ₹50,000 in fuel ten years from now is not the same as saving ₹50,000 today.
- The calculator applies a standard 6% Inflation Rate to all future cash flows.
- It uses the Fisher Equation to determine the Real Rate of Return:
$$Real Rate = \frac{1 + Nominal Rate}{1 + Inflation Rate} - 1$$
Instead of a simple "Yearly Saving" number, the tool plots a 15-year timeline. It checks year-by-year if the cumulative fuel savings have finally overtaken the compounding growth of the unspent capital.
The website features three distinct analysis modes to cover every buyer's dilemma:
- Best for: Buyers deciding between cars like Tata Nexon EV vs Creative Petrol or MG ZS EV vs Astor.
- Key Factors: Battery range efficiency (km/kWh), Home charging rates, and EV Subsidies.
- Best for: Entry-level buyers deciding between Maruti Swift CNG vs Petrol.
- Key Factors: Calculates if the higher maintenance and kit cost is justified by your monthly running.
- Best for: High-usage drivers (Uber/Ola/Commuters) deciding between the two "Low Running Cost" options.
- Key Factors: Compares the hassle of CNG queues vs the range anxiety of EVs.
Follow these steps to get an accurate financial result:
- Price: Enter the On-Road Price, not Ex-Showroom.
- Subsidy: If your state (e.g., UP, Maharashtra) has a subsidy policy, deduct that from the EV price.
You must define your Opportunity Cost. Ask yourself: "If I didn't buy the expensive car, where would I put the money?"
- Select 6-7%: If you are conservative and would keep the money in an FD.
- Select 12%: If you invest in Mutual Funds / Stocks.
- Select 0%: If you would just keep the cash in a savings account (Not recommended!).
The calculator gives you a verdict badge. Here is what they mean:
| Verdict Badge | Financial Implication | Recommendation |
|---|---|---|
| 🟢 Instant Win | The EV/CNG car is cheaper upfront (rare) or savings start month 1. | Strong Buy |
| 🔵 Recovering (0-5 Yrs) | You break even quickly. The fuel savings vastly outweigh the lost investment returns. | Buy |
| 🟡 Neutral (5-8 Yrs) | This is the typical car ownership cycle. You aren't losing money, but not making much either. | Personal Preference |
| 🔴 Long Term (8+ Yrs) | It takes too long to recover the cost. You are better off buying the cheaper car and investing the difference. | Avoid / Buy Petrol |
| 🔴 Never | The interest on the saved capital is higher than the fuel savings. The EV will never be financially cheaper. | Strong Avoid |
- Client-Side Architecture: The entire calculation logic sits in
index.htmlandscript.js. - Zero Data Usage: No user input, financial data, or preferences are sent to any server. Everything runs locally on your device.
- Performance: Built with Vanilla JavaScript (ES6) for <100ms load times, even on 3G networks.
Created by [Sudhanshu Gausinga]
Passionate about Technology, Finance, and building useful tools