Car Affordability Calculator
Know before you sign the papers.
Run any vehicle through the 20/4/10 rule, see your true monthly payment with insurance and fuel, and find the max car your income actually supports. 100% free.
Your income
The vehicle
The loan
Affordability checks
20/4/10 rule
13% down (need ≥20%) · 5y term (need ≤4y) · 13.6% of gross (need ≤10%)
Payment ≤10% of take-home
10.6% of monthly take-home goes to the loan payment.
Debt-to-income ≤36%
New DTI 12.9% (existing debt + this loan / gross income).
Monthly payment
$616
All-in $1,021/mo with insurance & fuel
Amount financed
$30,740
Total interest
$6,218
Total cost of ownership
$65,258
Score
73 · Stretched
Stretched. Doable, but it'll squeeze.
Your all-in monthly cost is $1,021 — 13.6% of your gross income, above the 10% the 20/4/10 rule wants.
Try $30,323 as your max — that keeps the payment near 10% of take-home at your APR and term.
Max affordable price
$30,323
Keeps your loan payment near 10% of take-home at 7.5% APR for 60 months.
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If DTI is tight, knock out existing debts before adding a car loan.
Open →Fit the all-in monthly auto cost into a 50/30/20 budget that actually balances.
Open →See what skipping the upgrade and investing the difference becomes over 10–30 years.
Open →Frequently asked questions
What's 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 auto costs (payment + insurance + fuel + maintenance) under 10% of your gross income. Cars that pass 20/4/10 rarely become a financial regret.
How much car can I really afford on my salary?
A safe starting point is keeping your loan payment under 10% of monthly take-home pay and your total debt-to-income under 36%. This calculator solves both for you and shows the maximum vehicle price that fits.
Is it smarter to buy a cheaper used car?
Usually yes — a 2–3 year-old used car has already absorbed the steepest depreciation. The opportunity-cost view below shows what the difference between a $35k new car and a $20k used one could become if invested over the loan term.
Should I take dealer financing or get pre-approved?
Always get pre-approved at a credit union or your bank first. Bring that APR to the dealer as your floor — they may beat it, but you've removed the financing as a negotiation pressure point.
Is the Car Affordability Calculator free?
Yes — the affordability check, 20/4/10 evaluation, monthly payment, and total-cost-of-ownership are 100% free. Freedom Fighter unlocks scenario comparison (up to 3 vehicles), full month-by-month amortization, and an opportunity-cost projection.
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