Car Affordability Calculator
Find out how much car you can really afford based on your take-home pay, debts, and total ownership costs (insurance, maintenance, APR, tax).
Your budget
Max car price (15% rule)
$26,403
About $750 per month all in.
Max loan amount
$25,251
Loan payment
$500
Total monthly cost
$750
By conservativeness
Strict (10%)
$14,603
Safest
Balanced (15%)
$26,403
Recommended
Stretch (20%)
$38,202
Aggressive
Frequently Asked Questions about the Car Affordability Calculator
What is the 20/4/10 rule for car buying?
Put at least 20% down, finance for no more than 4 years (48 months), and keep total monthly transportation costs (loan, insurance, fuel, maintenance) under 10% of your gross income. Strict but keeps you out of trouble.
What debt-to-income ratio do lenders want?
Most auto lenders prefer your total monthly debt payments (including the new car payment) to stay under 36% of gross income. Above 43% you will struggle to get approved or pay a much higher APR.
How much should I budget for car insurance?
US full-coverage averages around $150 per month, but it varies widely. A 25-year-old with a clean record in Ohio might pay $90; a 19-year-old in Michigan with a financed sports car can pay $400+. Get a real quote before you commit.
What hidden costs do people forget?
Registration and title fees, dealer doc fees, gap insurance, extended warranties, fuel, tires (about $800 every 50,000 miles), brakes, and depreciation. New cars lose roughly 20% of value in year one alone.
Should I lease or buy?
Lease if you want a new car every 3 years, drive under 12,000 miles annually, and value low monthly payments. Buy if you keep cars 6+ years, want to build equity, or drive a lot. Buying used and keeping it 10 years is almost always the cheapest path.