Car Affordability Calculator
The car price your income and budget actually support.
Enter your values
ⓘ Live results
- Affordable car price
- $17,407.51
- Monthly loan payment
- $300.00
- Total monthly car cost
- $600.00
- Amount financed
- $12,407.51
- Total interest over the loan
- $1,992.49
Quick answer
The 20/4/10 rule says put 20% down, borrow for no more than 4 years, and keep total vehicle costs under 10% of gross income.
Affordable price = down payment + PV(monthly payment, rate, term)
How to use the Car Affordability Calculator
- 1Enter gross monthly income before tax.
- 2Keep the income share at 10% for a conservative budget, or raise it if you have no other debt.
- 3Enter your down payment, rate and term.
Worked example
Using the values the calculator loads with:
Inputs
- Gross monthly income6000 $
- Share of income for all car costs10 %
- Insurance, fuel and upkeep300 $/mo
- Down payment / trade-in5000 $
- Loan APR7.5 %
- Loan term48 months
Results
- Affordable car price$17,407.51
- Monthly loan payment$300.00
- Total monthly car cost$600.00
- Amount financed$12,407.51
- Total interest over the loan$1,992.49
Frequently asked questions
Should I take a 72-month loan?
Longer loans lower the payment but you stay in negative equity for years. Four years is the usual limit for a car that will still be worth more than the balance.
Does this include insurance?
Yes — the running-cost field covers insurance, fuel, tax and servicing, which is why the loan payment comes out lower than a payment-only calculator.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.