How Much Car Can I Afford?
Start from a monthly payment you’re comfortable with, and this calculator works backward to the car price it supports — including your down payment and trade-in. Adjust the term and APR to see how your budget stretches.
How to set your budget: the 20/4/10 rule
A widely used guideline keeps your car costs in proportion to your income: put at least 20% down, finance for no more than 4 years, and keep total monthly car costs — the payment plus insurance, fuel, and maintenance — under 10% of your gross income. The payment you enter above should fit comfortably inside that 10%, with room for the running costs. We explain it in full in how much car you can afford.
What this number does and doesn’t include
The affordable price is what you can finance plus your down payment and trade-in — before sales tax, registration, and dealer fees, which are paid on top. It also doesn’t include the ongoing cost of owning a car (insurance, fuel, maintenance, and depreciation), which often matters more than the payment. Once you have a target price, run it through the full payment calculator to confirm the numbers.
Frequently asked questions
How much car can I afford? +
A common guideline is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car costs (payment plus insurance, fuel, and maintenance) under 10% of your gross income. This calculator works backward from a monthly payment you choose to the car price that payment supports.
What monthly payment should I use? +
Use a figure you can comfortably cover alongside insurance, fuel, and maintenance — not the maximum a lender will approve. Keeping total car costs under about 10% of your gross monthly income is a sensible ceiling.
Does the affordable price include taxes and fees? +
No. The result is the amount you can finance plus your down payment and trade-in, before sales tax, registration, and dealer fees. Leave a margin for those, since they are paid on top of the vehicle price.