Free Car Affordability Calculator
Use this car affordability calculator to see how much car you can afford: enter your income, debts and down payment for a price that keeps your whole car budget in check.
How the car affordability calculator works
- Car budget: your gross monthly income × the budget share (15% by default).
- Loan payment limit: the budget minus insurance, gas and upkeep, and never more than 36% of income minus your other debts.
- Loan amount: the largest loan that payment repays over your term at your interest rate.
- Car price: loan + down payment + trade-in, less the sales tax you will pay on the car.
Car price you can afford on a $60,000 salary
Gross monthly income: $5,000. Assumes 7% APR, $350 a month for insurance, gas and upkeep, 7% sales tax and no other debts.
| Car budget | Down payment | 48-month loan | 60-month loan | 72-month loan |
|---|---|---|---|---|
| 10% of income ($500/mo) | $0 | $5,854 | $7,080 | $8,223 |
| 10% of income ($500/mo) | $3,000 | $8,658 | $9,883 | $11,026 |
| 10% of income ($500/mo) | $5,000 | $10,527 | $11,753 | $12,895 |
| 15% of income ($750/mo) | $0 | $15,611 | $18,879 | $21,927 |
| 15% of income ($750/mo) | $3,000 | $18,415 | $21,683 | $24,731 |
| 15% of income ($750/mo) | $5,000 | $20,284 | $23,552 | $26,600 |
The 20/4/10 rule
Put 20% down, borrow for no more than 4 years, and keep all car costs under 10% of gross income. On $60,000 that points to a car of about $7,200 (loan payment $150 a month, $1,440 down).
How much car can I afford on my salary?
- $30,000 salary
- $35,000 salary
- $40,000 salary
- $45,000 salary
- $50,000 salary
- $55,000 salary
- $60,000 salary
- $65,000 salary
- $70,000 salary
- $75,000 salary
- $80,000 salary
- $85,000 salary
- $90,000 salary
- $95,000 salary
- $100,000 salary
- $110,000 salary
- $120,000 salary
- $130,000 salary
- $140,000 salary
- $150,000 salary
- $175,000 salary
- $200,000 salary
How much car can I afford per month?
- Car for $200 a month
- Car for $250 a month
- Car for $300 a month
- Car for $350 a month
- Car for $400 a month
- Car for $450 a month
- Car for $500 a month
- Car for $600 a month
- Car for $700 a month
- Car for $800 a month
- Car for $1,000 a month
Budgeting for running costs? Use the gas cost calculator. Leasing instead? Try the car lease calculator.
Frequently asked questions
How much car can I afford?
This car affordability calculator follows a common guideline: keep the loan payment, insurance, gas and maintenance together at 10% to 15% of your gross income, and keep all debt payments under 36% of gross income. The calculator applies both limits.
What is the 20/4/10 rule for buying a car?
Put at least 20% down, finance for no more than 4 years, and keep total monthly car costs (payment, insurance, fuel) under 10% of gross income. It is a cautious rule that leaves room for saving.
Should I count insurance and gas in my car budget?
Yes. Insurance, fuel and maintenance can add several hundred dollars a month. A payment that looks affordable alone can stretch your budget once running costs are added.
Does a longer loan let me afford more car?
It lowers the monthly payment, so the calculator shows a higher price, but you pay more interest overall and are more likely to owe more than the car is worth.
These are guidelines, not lending decisions. Lenders also look at your credit score and full budget.