HaatBeat Calculators

Own a car, or use cabs?

A car costs much more than its price: fuel, insurance, parking and the value it loses every year. See how that compares with taking cabs for the distance you actually travel.

Any currency
₹
On-road price of the car you would buy.
₹
Fuel, insurance, parking, servicing and any driver: everything except the price.
km
How far you would travel by cab each month.
₹
Average fare per kilometre, including waiting and surge.
years
1 to 20 years.
More assumptions 3
%
Cars often lose 10% to 20% of their value a year. 0% to 99%.
%
Applied to fares and running costs once a year. 0% to 30%.
% a year
An assumption, not a promise. 0% to 50%.
Using cabs ahead after 5 years
₹9,33,600
9.34 lakh

Under these assumptions, using cabs ends about ₹9,33,600 ahead after 5 years. Cabs cost about ₹10,800 a month today against ₹12,000 to run the car, and the car would then be worth about ₹3,54,964.

After 5 years
Own a car: car value plus savings₹3,54,964
Use cabs: savings₹12,88,564
Cabs a month today₹10,800
Car value at the end₹3,54,964
Using cabs ahead by₹9,33,600
Then change the inputs to compare two options side by side.
Illustrative estimate. The car is bought outright and its value falls by a steady yearly rate; fares and running costs rise once a year; money not spent is saved at a steady return. Loans, accidents and resale costs are not included.

Net worth by year

03.75 lakh7.5 lakh11.25 lakh15 lakh012345
Own a carUse cabs
YearOwn: net worthCabs: net worthSpent on cabs so farSpent running the car so far
1₹6,80,000₹8,81,340₹1,29,600₹1,44,000
2₹5,78,000₹9,70,177₹2,65,680₹2,95,200
3₹4,91,300₹10,67,173₹4,08,564₹4,53,960
4₹4,17,605₹11,73,042₹5,58,592₹6,20,658
5₹3,54,964₹12,88,564₹7,16,122₹7,95,691

Calculators behind this question

Beyond the numbers

The maths shows one side. These are the things only you can weigh.

  • Freedom and spontaneityA car is there whenever you want it: early mornings, late nights, last-minute trips. That convenience is hard to price.
  • Family needsSmall children, elderly parents or someone unwell can make a car feel essential, whatever the numbers say.
  • Stress of driving and parkingTraffic, parking and maintenance take time and energy. Some people are happy to hand all of that over.
  • Reliability of cabsAvailability and surge pricing vary by city and time. Where cabs are hard to find, a car brings certainty.
  • A middle pathMany families keep one car instead of two, or rent a car for trips. Mixing options can capture most of the savings.

How it's calculated

Cabs a month = distance × fare per km The cab user keeps the car price invested; each month whoever spends less saves the difference Owner's net worth = car value + savings; cab user's = savings

Both households start with the car's price. Costs rise once a year by the same rate, and savings grow at your assumed return. Comparing what each has at the end shows the full cost of owning against using cabs.

Assumptions

  • The car is bought outright; with a loan, add the interest to the monthly cost of owning.
  • The car's value falls by a steady yearly rate.
  • Fares and running costs rise by the same rate once a year.
  • Money not spent is saved at a steady return; accidents and resale costs are not included.

Worked example

An 8 lakh rupee car losing 15% a year and costing 12,000 rupees a month to run, against cabs at 18 rupees a km for 600 km a month (10,800 rupees), costs rising 5% a year and savings at 8%: after 5 years, using cabs ends about 9.34 lakh rupees ahead. At 1,500 km a month, owning the car ends about 3.72 lakh rupees ahead.

Questions

At what distance does owning win?

When cab fares for your distance are well above the car's running costs. Move the distance slider to find the point where the lines cross.

What should go into the cost of owning?

Fuel, insurance, parking, servicing, tyres, cleaning and any driver's salary. Leave out the price: it is handled separately.

What about long trips and holidays?

Add an estimate of rental or train costs for those trips to the cab side, divided across the year.

Does it include a car loan?

No. If you would borrow, add the monthly interest to the cost of owning, or see the car cash or loan page.

Sources

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