How Much Car Can I Afford?
Free · no sign-up · reviewed July 2026
Before you fall in love with a car on the lot, it helps to know the number you can actually afford. This calculator works backward from your take-home pay to a sensible car price and monthly payment, so you shop with a ceiling in mind.
Set your monthly take-home pay and down payment, and it shows the price range that keeps your car costs from crowding out the rest of your life. Dealers will happily sell you more, so bring your own number.
Drag to adjust
Car you can afford
$18,765
About $357/mo payment with $4,000 down
💡 On $4,200 of take-home pay, keeping all car costs near 10% leaves roughly $357 a month for the loan (after setting aside some for insurance and gas). With $4,000 down over 48 months, that supports a car around $18,765.
$18,765
Target price
out the door
$357
Max payment
loan only
$14,765
You'd finance
over 48 mo
- Down payment / trade-in$4,000
- Financed with a loan$14,765
- Total monthly car budget
- $420
- For the loan payment
- $357
- Amount you can finance
- $14,765
- Car price you can afford
- $18,765
The 2-minute guide
The 20/4/10 rule
A simple guideline that keeps people out of car trouble: put at least 20% down, finance for no more than 4 years, and keep all your car costs (payment, insurance, gas, maintenance) under about 10% of your take-home pay. This calculator leans on that 10% ceiling and sets a little aside for the non-loan costs.
Longer loans hide a bad deal
Stretching to 72 or 84 months makes almost any car's monthly payment look affordable, but you pay far more interest and stay 'underwater' (owing more than the car is worth) for years. If a 4-year loan's payment feels too high, that's usually a sign to look at a cheaper car, not a longer loan.
Payment isn't the whole cost
The sticker and the payment are just the start. Insurance, fuel, registration and repairs can easily add a few hundred dollars a month. That's why the rule of thumb is based on total car costs, not just the loan. Budget for the whole picture so the car doesn't quietly break your finances.
Frequently asked questions
How much car can I afford on my salary?
A common guideline is to keep all your car costs (payment, insurance, gas and upkeep) under about 10% of your take-home pay, with at least 20% down and a loan of 4 years or less. This calculator turns your pay into a specific price and payment using that approach.
What is the 20/4/10 rule for buying a car?
It's a simple affordability rule: put 20% down, finance for no more than 4 years, and keep total monthly car costs at or below 10% of your take-home pay. Following it keeps you from overspending and helps you build equity in the car instead of staying underwater.
Should I buy a new or used car?
Used cars are usually the better financial move because new cars lose a big chunk of value in the first few years. A lightly used car lets someone else absorb that first hit of depreciation. If you do buy new, plan to keep it long enough to make the higher cost worthwhile.
How much should I put down on a car?
Aim for at least 20% down on a new car (less depreciation risk on used). A bigger down payment lowers your loan, your interest and your monthly payment, and it keeps you from going underwater as the car loses value.
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