Car Affordability Calculator: How Much Car Can I Afford?
Find how much car you can afford from the monthly payment or your income, with the interest rate, term, down payment, trade-in, tax and the 20/4/10 rule.
The 20/4/10 rule
What it does
The calculator works backwards from the payment: it finds how much a loan with that monthly payment can finance at the interest rate and term you choose, adds the down payment and trade-in, subtracts fees and removes the sales tax to get the most expensive car that fits. Without a payment, it uses 10% of your gross monthly income, as in the 20/4/10 rule.
How to use it
- Type the monthly payment you can afford, or your annual gross income.
- Type the interest rate, term, down payment, trade-in value, sales tax and fees.
- See the car price you can afford, the total interest and whether the plan meets the 20/4/10 rule.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much car can I afford with a 500 monthly payment?
At 6% a year for 60 months, 500 a month finances about 25,863. With a 5,000 down payment that is a car of about 30,863, before sales tax and fees.
What is the 20/4/10 rule?
Put at least 20% down, finance for no more than 4 years and keep car costs (payment, insurance and fuel) at no more than 10% of your gross monthly income. The calculator checks the payment part.
Should I take a longer loan to afford a more expensive car?
A longer term lowers the payment but raises the total interest, and the car loses value faster than you pay the loan. Compare the total interest of each term before deciding.
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