Car Affordability Calculator
The car price your income supports, keeping the payment to a set share of your pay, following the 20/4/10 guideline: 20% down, four years, 10% of income.
Car price by income (20% down, 48 months at 7%, 10% of income, 6% tax)
| Income | Monthly payment | Car price |
|---|---|---|
| $40,000 | $333 | $16,186 |
| $60,000 | $500 | $24,279 |
| $80,000 | $667 | $32,372 |
| $100,000 | $833 | $40,465 |
| $150,000 | $1,250 | $60,698 |
How this calculator works
The payment limit is your gross monthly income times the share you choose. The loan that payment supports, plus your down payment, less sales tax, gives the price.
What it assumes
- Insurance, fuel and maintenance come on top; the 20/4/10 rule keeps the payment alone to 10% so total car costs stay near 15% to 20%.
Questions people ask
What is the 20/4/10 rule for buying a car?
Put at least 20% down, finance for no more than four years, and keep the payment (some say all car costs) under 10% of gross income.
How much car can I afford on $60,000 a year?
About $24,279 with 20% down, a 48-month loan at 7% and a $500 payment.
Should I buy new or used?
New cars lose value fastest in the first few years, so a lightly used car often costs less per year of use; new cars can come with lower promotional rates.
What rate will I get on a car loan?
It depends mainly on your credit score, the term and whether the car is new or used. Getting preapproved by a bank or credit union gives you a rate to compare with the dealer's offer.
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Sources
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.