🚗 Car Affordability Calculator
How much car can you really afford? Enter your annual salary and this calculator uses the 15% rule — your total car payment should not exceed 15% of take-home pay — to show your maximum affordable car price.
No sign-up, instant results.
How to use this calculator
Enter your salary and loan details to see the maximum car price you can afford without stretching your budget.
- Enter your Annual salary.
- Add Down payment and Trade-in value if any.
- Set the Loan APR and Term in months.
- Press Calculate to see your max affordable car price.
How Much Car Affordability Can I Afford?
Lenders look at your income, existing debts, credit score and down payment to set your limit, but the number they approve is not always the number you should borrow. This Car Affordability Calculator models your true monthly cost including taxes, insurance and fees, so you can find a payment that fits your life, not just your approval letter.
Frequently asked questions
How much car can I afford based on salary?
Using the 15% rule: your monthly car payment should not exceed 15% of take-home pay. On a $60,000 salary (~$3,750/month take-home), that's ~$563/month, which affords roughly a $33,000 car with $5,000 down on a 60-month loan at 7%.
What is the 15% rule for car buying?
Total monthly car costs (payment + insurance + fuel) should stay under 15-20% of take-home pay. This calculator uses 15% for the payment alone, leaving room for insurance and fuel.
Does this include insurance and fuel?
No — this covers the car payment only. Budget separately for insurance (~$150/month) and fuel based on your driving.
How much car affordability can I afford on my salary?
A common rule is that your total monthly car affordability payment should stay under 28% of your gross monthly income, with all debts under 36%. Enter your income, debts and down payment above and this Car Affordability Calculator will show exactly what fits your budget, including taxes and insurance where they apply.
Is it better to put 10% or 20% down?
Putting 20% down usually avoids private mortgage insurance and earns you a lower interest rate, saving thousands over the life of the loan. With 10% down your monthly payment is higher, but you keep more cash in reserve. Use the Car Affordability Calculator above to compare both scenarios side by side before you decide.
What credit score do I need for the best car affordability rates?
Conventional lenders typically reserve their lowest rates for scores of 740 or higher, while FHA-style options may accept scores in the high 500s with a larger down payment. Even a 0.5% rate difference changes your total cost dramatically, so run your numbers in the Car Affordability Calculator with a few different rates to see the impact.
Should I choose a 15-year or 30-year term?
A 15-year term builds equity far faster and slashes total interest, but the monthly payment is roughly 40-50% higher than a 30-year term. A 30-year term keeps payments manageable and frees cash for investing. Plug both terms into the Car Affordability Calculator above to compare total interest side by side.