Car Affordability Calculator
Determine how much car you can afford based on your budget and income.
Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
How much car can I afford on my salary?
A common guideline suggests total car costs (payment, insurance, gas, maintenance) at 10-15% of take-home pay. On $5,000/month take-home, this translates to $500-750 in total car costs.
What is the 20/4/10 rule for buying a car?
The 20/4/10 rule is a guideline: 20% down payment, maximum 4-year loan term, and total transportation costs under 10% of gross income. It is one framework some use when evaluating car affordability.
How much should I spend on a car if I make $50,000?
At $50,000 gross income, the 10% rule suggests $5,000/year ($417/month) for total car costs. This would mean a car payment leaving room for insurance and gas within that total budget.
Should I buy new or used to save money?
Used cars typically cost less upfront and have already experienced initial depreciation. Certified pre-owned cars (2-3 years old) avoid the steepest depreciation while often retaining warranty coverage.
What is a reasonable monthly car payment?
Common guidelines suggest total car costs at 10-15% of take-home pay. For many households, this translates to payments between $300-500/month, with remaining budget for insurance, fuel, and maintenance.
Does a down payment really matter?
Down payments reduce loan amount, lower monthly payments, and reduce risk of owing more than the car is worth. 20% down is a common benchmark; covering at least taxes, fees, and first-year depreciation helps avoid negative equity.