Car Affordability Calculator

A common guideline keeps car payments under about 10–15% of gross monthly income — some use the stricter 20/4/10 rule (20% down, a 4-year loan, and transportation costs under 10% of income). The calculator takes your chosen share as the affordable payment, then finds the largest loan it supports at your rate and term, and adds your down payment.

A 72- or 84-month loan lets you "afford" a pricier car on the same monthly payment, but you pay far more interest and stay underwater (owing more than the car is worth) for years. A shorter term is the honest test of what you can afford — if it only fits over 7 years, it is too much car.

Owning a car also costs insurance, fuel, registration, maintenance and repairs — often as much again as the payment. Leave room for those in your budget, and remember that a cheaper car cuts insurance and depreciation too, not just the loan.