Car Affordability Calculator

Determine how much car you can realistically afford based on your income and expected costs. This calculator uses the 20% rule - your total car expenses should not exceed 20% of monthly income.

The 20% Rule Includes:

• Monthly loan or lease payment
• Auto insurance
• Fuel costs
• Maintenance and repairs

Alternative: 20/4/10 Rule

• 20% down payment
• 4-year loan maximum (avoid 6-7 year loans)
• 10% of gross income on payment only (not including other costs)

Recommendation: If you can't afford at least a 10% down payment and a 4-year loan, you're buying too much car. Consider a less expensive vehicle or save more first.