Car Affordability Calculator
Find out how much car you can actually afford based on your income, expenses, and existing debt. Know your budget before you shop so you don't overcommit.
Your Financial Details
(Income − Living Expenses − Existing Debt)
Safest choice. Leaves plenty of room in your budget for savings and unexpected expenses.
Balanced option. Comfortable payment that fits most household budgets without stretching.
Maximum recommended. Leaves little cushion — only choose this if your finances are very stable.
The 20/4/10 Rule
20% down, 4-year max loan, 10% of income on total car costs (payment + insurance + gas).
Don't Forget Insurance & Gas
Insurance ($100-$250/mo), fuel, and maintenance easily add $300-$500/month on top of your payment.
Leave a Buffer
Staying below your max keeps you safe from surprise costs like repairs, insurance hikes, or income changes.
Frequently Asked Questions
How much of my income should I spend on a car payment?
A common rule is to keep your total monthly car expenses (payment, insurance, fuel, maintenance) under 15-20% of your take-home income. This calculator recommends 10% of your available income (after expenses and debt) as a conservative target.
What is the 20/4/10 rule for buying a car?
The 20/4/10 rule says: put at least 20% down, finance for no more than 4 years (48 months), and keep total monthly car expenses under 10% of your gross income. Following this rule helps avoid being upside-down on your loan.
Should I include insurance and gas in my budget?
Yes. Beyond your monthly payment, budget for insurance ($100-$250/mo), fuel ($100-$300/mo), and maintenance ($50-$100/mo). This calculator focuses on payment affordability — add these ongoing costs to your "Monthly Living Expenses" field for a more accurate picture.
What if I have bad credit or a high APR?
A higher interest rate dramatically reduces how much car you can afford at the same monthly payment. Try setting the APR to your actual expected rate (often 10-18% for subprime credit) to see your real affordability. Improving your credit before buying can save thousands.