CalculatorsFinance
Car Affordability Calculator
Overview
Calculate how much car you can afford based on income, debts, and down payment using the 20/4/10 rule and debt-to-income ratios
Key Facts
| Field | Value |
|---|---|
| Calculator ID | car-affordability |
| Category | Finance |
| Vertical | Finance & Economics |
| App route | /verticals/finance/car-affordability |
| API endpoint | /api/public/calculate?id=car-affordability |
Inputs
| Input ID | Label | Type | Required | Default | Constraints |
|---|---|---|---|---|---|
currency | Currency | select | Yes | USD | - |
annualIncome | Annual Gross Income | currency | Yes | 60000 | min 1000, max 10000000, step 1000 |
monthlyDebts | Monthly Debt Payments | currency | Yes | 500 | min 0, max 100000, step 50 |
downPayment | Down Payment | currency | Yes | 5000 | min 0, max 1000000, step 500 |
interestRate | Interest Rate | percent | Yes | 6.5 | min 0, max 30, step 0.1 |
loanTerm | Loan Term | select | Yes | 4 | - |
monthlyInsurance | Estimated Monthly Insurance | currency | No | 150 | min 0, max 5000, step 10 |
monthlyGas | Estimated Monthly Gas/Fuel | currency | No | 150 | min 0, max 5000, step 10 |
calculationMethod | Calculation Method | select | Yes | 20-4-10 | - |
How to Use
- Enter Income & Debts — Enter your annual gross income and current monthly debt payments
- Input Down Payment — Input your down payment amount and preferred loan term
- Add Interest Rate — Add the interest rate offered by your lender
- Include Operating Costs — Include estimated insurance, gas, and maintenance costs
- View Affordability — View maximum affordable car price and monthly payment
Result Surfaces
| Output | Display Type | Format |
|---|---|---|
| Computed results | result-card | - |
Related Calculators
FAQ
What is the 20/4/10 rule for car buying?
20% down payment, finance for no more than 4 years, total car expenses (payment + insurance + gas) should not exceed 10% of gross income. It's conservative but helps avoid being underwater on your loan.
How much car can I afford with my income?
Rule of thumb: car payment should be 10% of gross monthly income or less. $60k/year ($5k/month) → max $500 payment. Include insurance ($150) and gas ($150) for total car cost of $800 (~16% of income).
Is a 6-year car loan a bad idea?
Generally yes. 6-7 year loans mean: 1) Paying interest longer, 2) Higher total cost, 3) Being underwater (owing more than car's worth) for years. If you need 6+ years to afford it, the car is too expensive.
Evidence
src/lib/calculators/registry.ts(metadata)src/lib/calculators/page-registry.ts(page/HowTo metadata)src/lib/calculators/finance/car-affordability.ts(calculator config)