How Much Car Can I Afford?
Aim to keep your monthly payment within 10–15% of take-home pay and your total car expenses under 20%.
Ready to run the numbers? Jump straight to our Auto Loan Calculator.
Start with your take-home pay
Work from your net income rather than gross pay. Add up paycheck deposits, subtract recurring debts (student loans, credit cards, rent), and see what’s left. Keep the new payment inside your comfort zone so unexpected expenses don’t derail your budget.
Example affordability snapshots
These examples assume take-home pay that’s roughly 65% of gross income. Your situation may differ based on taxes, benefits, and bonuses.
| Income | Take-home (est.) | 15% payment | 20% total cost | What it means |
|---|---|---|---|---|
| $50,000 | $3,300 | $495 | $660 | Keep payments near $400–$500 with a modest down payment. |
| $75,000 | $4,900 | $735 | $980 | Room for a well-equipped sedan or small SUV. |
| $100,000 | $6,500 | $975 | $1,300 | Comfortably budget for a higher-trim SUV or EV. |
Layer in down payment and trade-in value
Cash up front lowers the amount you need to finance, reducing interest costs and keeping payments low. Even a small trade-in can help. Use our Loan Affordability Calculator to combine down payment, APR, and term for a personalized estimate.
Next steps
- Price out vehicles using the Auto Loan Calculator to see how taxes and down payment affect the monthly bill.
- Use the Loan Affordability Calculator to balance car costs with the rest of your budget.
- Want to understand the mortgage side too? The Mortgage Refinance Calculator shows how lower rates change payments.
Quick payment check
Keep your car payment under 10–15% of take-home pay. Adjust the sliders to see what fits.
Payment target
$100.00
Based on your inputs and a 0% APR placeholder. Use the full affordability calculator to personalize the rate and term.
Email my calculations
Receive a printable breakdown (PDF) to revisit your calculations later.
Recommended payment ranges by income
Compare 10% and 15% payment targets alongside a 20% total-car-cost budget, assuming take-home pay is roughly 65% of gross income.
When you’re ready to act, lock in your numbers with the Loan Affordability Calculator and Auto Loan Calculator.
How to use the How Much Car Can I Afford Calculator
Reverse engineer the sticker price you should target based on your ideal payment, savings, and total cost of ownership.
- Enter your monthly budget and available down payment.
- Add estimated interest rate, term, and trade-in value to determine the maximum loan amount.
- Include insurance, fuel, and maintenance estimates to reflect the all-in car cost.
- Review the suggested purchase price and adjust until it leaves breathing room for other goals.
How Much Car Can I Afford Calculator key terms
Knowing how each field influences the results keeps the math grounded in reality.
All-in payment
Combines loan payment with insurance and operating costs. Keeps you from overspending even if financing is cheap.
Front-loaded depreciation
New cars lose value quickly in the first few years. Planning for it keeps you from being upside down on the loan.
Ownership horizon
How long you plan to keep the vehicle. It influences how aggressive you can be with incentives or higher trims.
How Much Car Can I Afford Calculator planning ideas
Try running a few “what if” scenarios to translate the numbers into real-world decisions.
Cash purchase goal
Test how long it would take to save enough to avoid financing entirely.
New vs. certified pre-owned
Compare payments, depreciation, and insurance cost differences for each option.
Company car allowances
Add employer reimbursements to see how much additional vehicle you can comfortably support.
Frequently asked questions
Is the 20/4/10 rule still relevant?
It is a good starting point—20% down, a four-year loan, and no more than 10% of income toward car expenses. Use the calculator to customize those guardrails to your situation.
How do I account for future repairs?
Add a maintenance allowance or warranty cost into the monthly total so unexpected repairs do not derail your budget.