Car / Budget
Car Affordability Calculator: How Much Car Can I Afford?
Start with a monthly car budget or a percentage of gross income. Allow for insurance, energy and maintenance before estimating the loan and car price.
Car Affordability Calculator: How Much Car Can I Afford?: Subtracts monthly running costs from the car budget, then finds the principal supported by the remaining payment. Down payment and net trade-in are added, and full-price sales tax is removed to give a price before tax. Runs 100% locally in your browser with zero server file uploads.
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- Home & family tools
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- Free · no sign-up
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- Ready to use
Runs entirely in your browser
Changing currency does not convert prices. Unit changes preserve the same physical quantities.
The 20/4/10 guideline suggests 20% down, a loan of at most four years and total transport costs within 10% of gross income. It is a starting point, not a requirement; this calculator does not enforce it. Source: Chase consumer education
Insurance, energy and maintenance are deducted before finding the affordable loan payment. Tax applies to the whole price; trade-in tax credits, fees and lender approval criteria are excluded. Add other regular car costs to your maintenance allowance if needed.
20/4/10 as a guideline
Chase's consumer education describes the down payment, term and gross-income guideline and its limitations: https://www.chase.com/personal/auto/education/buying/what-is-the-20-4-10-rule-for-car-buying
Inverting the payment
For payment A, monthly rate r and n payments, affordable principal is A × [1 − (1 + r)^−n] ÷ r. At zero interest it is A × n. Maximum price = (principal + down payment + net trade-in) ÷ (1 + tax rate). All monetary inputs must use the same currency; the selector changes display only.
How to use it
- Choose a total monthly budget or a percentage of gross monthly income.
- Enter monthly running costs, APR, loan term, down payment, net trade-in and sales tax.
- Read the maximum price, loan amount and total monthly cost.
Privacy & limitations
Your income and budget stay in your browser.
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Frequently asked questions
Is the 20/4/10 guideline compulsory?
No. It suggests 20% down, financing for no more than four years and total transport costs within 10% of gross income. Adjust the inputs to your circumstances; these limits are not enforced.
Does the budget include running costs?
Yes. The monthly total includes the loan payment, insurance, fuel or electricity and maintenance. Include other recurring expenses in the maintenance allowance.
Does this show what a lender will approve?
No. Credit criteria, fees, trade-in tax credits and other obligations are not modelled. Tax is charged on the full purchase price and financed.
Free tool · runs in your browser · no account required