Car Affordability Calculator
The car price your income and budget actually support.
Enter your values
Enter the gross monthly income in $.
Enter the share of income for all car costs in %.
Enter the insurance, fuel and upkeep in $/mo.
Enter the down payment / trade-in in $.
Enter the loan apr in %.
Enter the loan term in months.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- 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
- $1,992.49
Quick answer
The 20/4/10 rule says put 20% down, borrow for no more than 4 years, and keep total vehicle costs under 10% of gross income.
Affordable price = down payment + PV(monthly payment, rate, term)
At a glance
| What it does | The car price your income and budget actually support. |
|---|---|
| Category | Auto |
| Inputs needed | Gross monthly income, Share of income for all car costs, Insurance, fuel and upkeep, Down payment / trade-in, Loan APR, Loan term |
| Main output | Affordable car price |
| Formula | Affordable price = down payment + PV(monthly payment, rate, term) |
| Cost | Free — no sign-up, no download |
How to use the Car Affordability Calculator
- 1Enter gross monthly income before tax.
- 2Keep the income share at 10% for a conservative budget, or raise it if you have no other debt.
- 3Enter your down payment, rate and term.
Inputs explained
- Gross monthly income($)
- Enter the gross monthly income in $.
- Share of income for all car costs(%)
- Enter the share of income for all car costs in %.
- Insurance, fuel and upkeep($/mo)
- Enter the insurance, fuel and upkeep in $/mo.
- Down payment / trade-in($)
- Enter the down payment / trade-in in $.
- Loan APR(%)
- Enter the loan apr in %.
- Loan term(months)
- Enter the loan term in months.
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.
What do I need to enter into the Car Affordability Calculator?
Just 6 values: gross monthly income, share of income for all car costs, insurance, fuel and upkeep, down payment / trade-in, loan apr, loan term. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Car Affordability Calculator work out the 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. It applies the formula Affordable price = down payment + PV(monthly payment, rate, term) and shows the working so you can check each step by hand.
Is the Car Affordability Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.