Finance

Car Affordability Calculator

Determine the maximum car price you can comfortably afford based on your financial situation.

Monthly Income (After Tax) ($)

Monthly Expenses ($)

Rent, bills, food, etc. (excl. car)

Down Payment ($)

Trade-In Value ($)

Interest Rate (%/yr)

Loan Term (months)

Max % of Income for Car Payment

Experts recommend 10-15% of take-home pay

Rule of Thumb:
Monthly car payment ≤ 15% of take-home pay
Total car costs (payment + insurance + gas) ≤ 20% of income
Loan Amount = PMT × [(1-(1+r)^-n)/r]

How Much Car Can You Afford?

Financial experts recommend spending no more than 10-15% of your take-home pay on a car payment. The total cost of ownership (payment + insurance + fuel + maintenance) should stay under 20%.

The 20/4/10 Rule

20% down payment minimum
4 year (48 month) loan maximum
10% of gross income max for total car costs