Tools · Buying
Can you afford this car?
Enter the car and your take-home pay — the total monthly cost, and what share of your pay it takes.
The car + your pay
Start from the dealer's numbers and your own pay. Every field is clamped to a sensible range, so a typo can't break the result.
The car
Your pay & running costs
Default $6,000 is an example — about the median U.S. household's post-tax income (Census, 2024: $72,330/year). Enter your own.
AAA 2026 average: $175/mo (full coverage, $2,098/year). Your quote is the number that matters — it varies widely by driver, state, and car.
AAA 2026 average: $216/mo at 15,000 miles a year (17.3¢/mile, regular gas $4.152/gal). Drive less, or charge an EV at home, and this falls.
AAA 2026 average: $146/mo at 15,000 miles a year (11.7¢/mile, incl. routine maintenance, wear-and-tear repairs, and one set of tires).
Your answer
Total monthly cost vs. your take-home pay.
Loan payment $883 + running costs $537 — 60 months at 7.0% APR
Tight — 23.7% of take-home. The total is $220 a month over the 20% guideline ($1,200). It can work if the rest of the budget is light, but there's little slack for repairs or a rate rise.
- Amount financed
- $44,600
- Loan payment
- $883
- Running costs (insurance + fuel + maintenance)
- $537
- Share of take-home pay
- 23.7%
- 20% all-in budget
- $1,200 — $220 over
- Payment alone, as % of take-home
- 14.7% (15% ceiling for a new car)
Where the money goes
Each month's total, split by cost — same loan, same running costs.
What fits your pay? At $6,000 take-home, the most car that fits the 20% rule at 7.0% / 60 mo with $5,000 down is about $38,400. This car is $11,200 over that.
20/4/10 spot-check
Two of the rule's three tests, from the numbers above. The third test — total costs under 10% of gross pay before tax — isn't checked here: this calculator asks for take-home pay, and the rule is written on gross pay.
Benchmark: Q3 2026 average was $787/mo, $9,938 total interest, 7.0% APR on $44,664 financed — 25.5% took 84 months or longer (Edmunds, Oct 1, 2026). AAA 2026 all-in average: $1,072/mo.
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Get notified on deals →Common questions
How is a car loan monthly payment calculated?
Monthly payment M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount financed, r is APR ÷ 100 ÷ 12, and n is the term in months. If APR is 0%, M = P ÷ n. Totals use the exact (unrounded) payment; the payment shown is rounded to the nearest dollar.
What is the 20% affordability rule?
Edmunds' guideline: a new-car payment should be no more than 15% of your monthly take-home pay (10% for a used car or a lease). Fuel and insurance add about another 7%, so all car costs together should ideally be no more than 20% of your take-home pay. This calculator judges the total against that 20% line — and shows the payment alone against the 15% line, so you can see which one is doing the damage.
What is the 20/4/10 rule?
Put at least 20% down, finance for no more than 4 years, and keep total monthly transportation costs — payment, insurance, fuel, and maintenance — under 10% of your gross monthly income (Chase; J.D. Power). It is a guideline, not a lending rule, and it is stricter than the 20% take-home rule because it is measured on pay before tax. This calculator checks the down payment and term; the 10% test needs gross pay, which it doesn't ask for.
Where do the $175 / $216 / $146 defaults come from?
AAA Your Driving Costs 2026 (Sept 15, 2026), for a new car at 15,000 miles a year over 5 years: insurance $2,098/year ($175/month), fuel 17.3 cents/mile ($216/month), maintenance, repair and tires 11.7 cents/mile ($146/month). They are national averages — your insurance quote, your miles, and your car move them a lot.
What does this calculator leave out?
Taxes, title, and dealer fees (add them to the price if your quote includes them), registration, and depreciation. Depreciation is the biggest ownership cost — $4,422/year on average (AAA 2026) — but it isn't a monthly bill, so it isn't in the total. This is an estimate, not an offer, a quote, or financial advice.
Sources & formulas
- Monthly payment (standard amortisation): M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), P = amount financed, r = APR ÷ 100 ÷ 12, n = term in months. If APR is 0%, M = P ÷ n. Total paid = M × n. Total interest = total paid − P.
- Amount financed: vehicle price − down payment/trade-in. Taxes, title, and dealer fees are not included — add them to the price if your quote includes them.
- Total monthly cost: loan payment + insurance + fuel + maintenance. Share of take-home = total ÷ monthly take-home pay.
- 20% rule (Edmunds, "How Much Car Can I Afford?", updated Aug 13, 2025): new-car payment ≤ 15% of monthly take-home pay (10% used/lease); fuel and insurance ≈ another 7%; all car costs together ideally ≤ 20% of take-home pay. The verdict uses the 20% all-in line: up to 20% fits, 20–25% is tight, over 25% is a stretch.
- 20/4/10 rule (Chase, "The 20/4/10 Rule for Buying a Car"; J.D. Power, Jan 9, 2025): ≥ 20% down, ≤ 4-year term, total transportation costs ≤ 10% of monthly gross income. Advisory guideline, not a lending rule.
- Running-cost defaults (AAA Your Driving Costs, Sept 15, 2026): new car $12,863/year all-in, about $1,072/month, over 5 years / 75,000 miles at 15,000 miles/year, average MSRP $39,376. Insurance $2,098/year ($175/mo); fuel 17.3¢/mile ($2,595/year, $216/mo); maintenance, repair & tires 11.7¢/mile ($1,755/year, $146/mo). Depreciation $4,422/year; finance $1,184/year; license/registration/taxes $802/year.
- Take-home default (U.S. Census Bureau, Income in the United States: 2024, released Sept 9, 2025): median post-tax household income $72,330/year ≈ $6,028/month — the $6,000 default is an example, not a recommendation. Enter your own pay.
- Benchmarks (Edmunds, Q3 2026, published Oct 1, 2026): average financed $44,664; average payment $787/month (record); average total interest $9,938; average APR 7.0%; 25.5% of new-vehicle loans at 84 months or longer. Defaults ($49,600 price, $5,000 down, 7.0% APR) are illustrative only.
- This is an estimate, not an offer, a quote, or financial advice. Rates, terms, and eligibility vary by buyer, vehicle, and lender — verify the APR, term, and total at the source before you sign.