Car Affordability Calculator
Calculate how much car you can afford based on your income, down payment, and existing debts. Find your maximum car price using the 20/4/10 rule.Inputs
Include all income sources
Excludes rent/mortgage and utilities
Recommended: 20% of car price
Excellent credit: 4-6%, Good: 6-9%, Fair: 9-15%
Recommended: 4 years or less
Average: $100-200/month
Average: $100-200/month
20/4/10 is most conservative
Enter values to see results
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What is this?
The Car Affordability Calculator helps you determine how much car you can realistically afford using proven guidelines like the 20/4/10 Rule. It calculates maximum car price, monthly payment limits, and debt-to-income ratios to ensure you don't overextend financially on a vehicle purchase.How to use
Enter your gross annual income, current monthly debt payments, down payment amount, preferred loan term, interest rate, and estimated insurance, gas, and maintenance costs. The calculator shows maximum affordable car price, monthly payment limits, and whether you meet the 20/4/10 rule. Select your currency from 9 major options.Tips
- Follow the 20/4/10 rule: 20% down, 4-year term max, 10% of income for total car costs
- Include insurance, gas, and maintenance in affordability - they can double your monthly cost
- Buy 2-4 year old certified pre-owned cars for best value (significant savings vs new)
- Get pre-approved for auto loans from banks/credit unions before shopping (better rates)
- Negotiate out-the-door price, not monthly payment (dealers extend terms to hit payments)
- Keep debt-to-income ratio under 36% including all debts for financial stability
- Get insurance quotes before buying - luxury and sports cars cost significantly more
- Consider total cost of ownership - some brands have expensive parts and maintenance
- Avoid dealer add-ons like extended warranties and fabric protection (overpriced)
- Put extra money toward principal if possible to reduce interest and build equity faster
Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial advice. Actual results may vary based on lender terms, market conditions, and individual circumstances. Consult a qualified financial advisor before making financial decisions. See our full disclaimer for details.