AKG Money

Can I afford this bike?

A bike's EMI looks small. Add fuel, insurance renewals, servicing and riding gear for as long as you ride it, and see whether it fits your pay.

These are example numbers. Change any of them to see your own answer.

Your income

After income tax. Your monthly in-hand pay × 12.

₹

= ₹7.2 L

The most a bike should cost you each year, as a share of take-home pay. 15% is a common rule for a bike.

%
The bike
₹

= ₹3.5 L

Everything between the ex-showroom and on-road price. New bikes include 5 years of third-party cover here.

₹
years

Leave at 0 to ignore resale.

₹
The loan

Share of the on-road price you pay upfront. Put 100% if you're paying cash.

%
years

Two-wheeler loans usually cost more than car loans.

%
Running it
km

For an electric scooter or bike, use km per kWh and the electricity price below.

km per litre
₹

Paid from the second year; the first year is in the on-road price.

₹

The bundled third-party cover runs out after 5 years. This is the total for the years after.

₹
₹

Helmet, jacket, gloves, boots, guards and a cover. A one-time cost.

₹
Over the years
%

Fuel, insurance and servicing get dearer every year.

%
Not affordable

Owning this bike costs about ₹1.51 L a year, 21% of your take-home pay. Your comfort limit is 15%, or ₹1.08 L a year.

Each month while the loan runs
₹14,074
EMI ₹7,554 plus fuel and upkeep
Each month after the loan ends
₹6,520
Fuel, insurance and upkeep
A bike that fits your limit
Up to ₹1.25 L
Ex-showroom, with the same loan and running costs
Interest paid to the bank
₹1,21,241
A bigger down payment or shorter loan cuts this

Owning it for 8 years

Down payment83,000

EMIs, 5 years4,53,241

includes ₹1,21,241 interest

Fuel, 8 years4,45,091

Own-damage insurance21,000

Servicing, tyres and repairs1,56,800

Third-party insurance after year 518,000

Riding gear and accessories31,500

What it really costs₹12,08,632

Per year, averaged₹1,51,079

Per month, averaged₹12,590

Well-kept bikes often sell for 30–50% of their price after 8 years. Add a resale value under “The bike” to count it.

Bike cost as a share of take-home pay, by year
0%5%10%15%20%Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Limit 15%
Not affordable21% of pay

How this is worked out

  1. On-road price = ex-showroom price + road tax, first-year insurance and other charges.
  2. Your EMI comes from the loan amount (on-road price minus down payment), the interest rate and the tenure.
  3. Insurance: own-damage cover is renewed every year from the second year. Third-party cover bought with a new bike lasts 5 years; after that you renew it.
  4. Lifetime cost = down payment + every EMI + fuel + insurance + servicing + riding gear for the years you keep it, minus what you sell it for.
  5. Yearly cost = lifetime cost ÷ years you keep it. Within your comfort limit is affordable; up to a quarter over is a stretch.

Questions people ask

Why 15% of take-home pay for a bike?

A bike should be cheaper to own than a car, so the common rule is tighter: 15% rather than 20%. If you also pay rent or other EMIs, aim lower.

Why count riding gear?

A good helmet, jacket, gloves and boots can cost ₹25,000–₹40,000, and guards and a cover add more. It's part of what the bike costs you, and skipping it isn't safe.

How do I compare two bikes?

Work out the first bike, copy the link, then change the price, mileage and costs for the second bike and copy that link too. Open both side by side, or print both.

Does it work for electric scooters?

Yes. Put mileage in km per kWh and the electricity price per kWh in the fuel price box. Servicing is usually cheaper too, but budget for a battery replacement if you keep it long.

Is my data saved anywhere?

No. Everything is worked out in your browser. Your last numbers stay on your own device, and the page link holds them so you can share them.

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