How On-Road Price Is Calculated in India (RTO, Insurance & TCS Explained)
8 June 2026 · 6 min read
The 'on-road price' is the total you pay to drive a car home. It is always higher than the advertised ex-showroom price. Here's the breakdown.
1. Ex-showroom price
The manufacturer's price including GST and cess, before any local taxes. This is the number brands advertise.
2. Road tax (RTO)
A state-level tax, and the biggest variable. It typically ranges from about 6% in Gujarat to 15%+ in Karnataka and Telangana, and rises in higher price slabs. The same car can cost ₹50,000–₹1,00,000 more in one state than another purely on road tax.
3. Insurance
First-year comprehensive insurance (own-damage + third-party) is mandatory, usually 3–4% of ex-showroom depending on add-ons like zero-dep.
4. TCS (Tax Collected at Source)
A 1% TCS applies to cars with an ex-showroom price above ₹10 lakh. You can claim it back when filing income tax, but you pay it upfront.
5. FASTag, registration & handling
Smaller fixed costs — FASTag, registration charges and dealer handling — typically add a few thousand rupees.
Our on-road calculator on every car page applies state-specific road tax, insurance, TCS and FASTag so you can estimate the real cost in your city before you visit a dealer.
