Car Affordability Calculator
How much car can you actually afford? This applies the 20/4/10 rule — 20% down, 4-year loan, payments under 10% of pay — to your numbers.
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Learn moreThe 20/4/10 rule
A durable guideline for buying a car without straining your budget: put at least 20% down, finance for no more than 4 years, and keep total monthly auto costs (payment plus insurance) under 10% of income. Working backward from a 10% payment gives a realistic price ceiling.
How it’s calculated & sources
Target payment = income × your percent cap. We discount that payment over the loan term at the APR to find the affordable loan, then add your down payment for the total car price.
Benchmark: the 20/4/10 rule — 20% down, ≤4-year loan, total auto costs ≤10% of income.
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
On $5,000/month take-home, a 10% cap is a $500 payment. At 7% over 48 months that finances about $20,900; with $4,000 down you can afford roughly a $24,900 car.
Frequently asked questions
Should insurance count in the 10%?
Ideally yes — the rule targets total auto cost. If your insurance is high, leave more headroom under the payment cap.
Is a longer loan a bad idea?
Stretching to 72–84 months lowers the payment but you pay more interest and risk being underwater. Keeping it to ~4 years protects your equity.