How Much Car Can I Afford?
Calculate your car budget based on your income and financial situation.
Your Income
Before taxes and deductions
Your Expenses
Credit cards, student loans, etc.
Car Purchase Details
Based on your credit score
You Can Afford
$0
Max Monthly Payment
$0
Payment % of Income
0%
Total Debt-to-Income
0%
Budget Breakdown
Loan Amount
$0
+ Down Payment
$0
+ Trade-In Value
$0
= Max Vehicle Price
$0
Estimated Monthly Costs
Car Payment
$0
Insurance (estimated)
$0
Gas (estimated)
$0
Maintenance (estimated)
$0
Total Monthly Car Cost
$0
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Car Affordability Guidelines
The 20/4/10 Rule:
- 20%: Put at least 20% down
- 4: Finance for 4 years or less
- 10%: Total car costs should be under 10% of gross income
Other Common Guidelines:
- 15% Rule: Car payment should be max 15% of take-home pay
- 36% DTI: Total debt payments under 36% of gross income
- Half Your Salary: Car value should be less than half your annual income
True Cost of Ownership:
- Insurance: $100-300/month depending on coverage and vehicle
- Gas: $150-300/month for average driver (12,000 miles/year)
- Maintenance: $50-150/month averaged over time
- Registration/Taxes: Varies by state
- Depreciation: The hidden cost (15-20% first year)
Tips to Save:
- Buy 2-3 years used to avoid biggest depreciation
- Get pre-approved before shopping
- Consider total cost, not just monthly payment
- Avoid extending loan terms to lower payments