Car Affordability Calculator
Figure out your real budget before you start shopping, not after you've fallen for a specific car. This calculator applies the 20/4/10 rule to your actual income and existing debt to give you a realistic price range, so a dealership's financing menu can't quietly stretch your budget for you.
Your Budget
The 10% income cap in the 20/4/10 rule covers your total transportation spend — loan payment, insurance, fuel, and maintenance combined — not just the loan payment by itself. A car that fits your budget on the loan payment alone can still blow through your real limit once insurance and fuel are added in.
Recommended Max Vehicle Price
Down Payment Needed
$0
Max Monthly Payment
$0
Frequently asked questions
What is the 20/4/10 rule, exactly?
It's a widely used affordability heuristic: put down at least 20%, finance for no more than 4 years (48 months), and keep total monthly transportation costs — loan payment plus insurance, fuel, and maintenance combined — under 10% of your gross monthly income. It's designed to prevent both being financially "upside down" on the loan and letting a car payment crowd out the rest of your budget.
Why does my existing debt matter for car affordability?
Lenders (and this calculator) look at your total debt burden, not just the new car payment in isolation. High existing debt payments reduce how much additional monthly payment you can safely take on without straining your budget or hurting your approval odds — factoring it in gives you a realistic number instead of an optimistic one.
What if I can't afford 20% down?
A smaller down payment is workable, but it increases your risk of being upside down on the loan early on, since new vehicles typically lose 15-30% of their value in the first year alone. If you can't reach 20%, consider a less expensive vehicle, a shorter loan term, or waiting a few more months to build up your down payment before buying.
Is this calculator giving me a maximum price or a recommended price?
It's a recommended range based on the 20/4/10 rule applied to your real numbers — a responsible target, not necessarily the absolute maximum a lender might approve you for. Lenders will often approve buyers for more than the 20/4/10 rule suggests is comfortable, which is exactly the gap that leads to being "car poor." We'd rather show you the disciplined number.