Car affordability calculator
Turn a monthly budget into the car price you can afford, with a 20/4/10 rule check.
- ๐บ๐ธ US federal & state rules
Car price you can afford
$26,870
Out-the-door with tax, for $500.00 a month over 60 months
- Loan amount
- $25,251
- Total interest
- $4,749
- Sales tax on that price
- $1,881
- 20/4/10 price
- $18,000
This is an example. Enter your numbers above and press the button to see your own result.
20/4/10 rule check
| 20% down | No, 14.9%. 20% would be $5,374 |
|---|---|
| 4 years or less | No, 60 months |
| Car costs under 10% of gross income | No, 12% of $6,250 a month |
| Price that fits 20/4/10 exactly | $18,000 |
Same budget, other terms
| 36 months | $18,405 |
|---|---|
| 48 months | $22,785 |
| 60 months | $26,870 |
| 72 months | $30,680 |
- An estimate, not a loan offer. Your APR depends on credit and the lender.
- The 20/4/10 rule is a common guideline, not a lending standard: 20% down, a loan of 4 years or less, and car payment plus insurance and gas under 10% of gross monthly income.
Show the math
| Loan you can carry ($500.00 ร 60 months at 7%) | $25,251.00 |
|---|---|
| Plus down payment and trade-in | $4,000.00 |
| Minus fees | -$500.00 |
| Divide out 7% sales tax (on price minus trade-in) | $26,870.09 |
What to do next
How it works
The calculator finds the loan your monthly budget can carry at the APR and term you pick. It adds your down payment and trade-in, takes off fees, then removes sales tax so the result is the sticker price you can shop for.
If you add your income, it also checks the 20/4/10 rule and shows the price that fits that rule exactly with a 48 month loan.
Things to keep in mind
The budget should be what you can pay every month for the whole term, after rent, savings and other debt. Insurance on a newer car can be much higher than on your current one, so get a quote before you shop.
Frequently asked questions
How much car can I afford?
Start with the payment you can handle. At 7% for 60 months, $500 a month supports a loan of about $25,250, and your down payment and trade-in add to that.
What is the 20/4/10 rule for buying a car?
Put at least 20% down, finance for no more than 4 years, and keep the payment plus insurance and gas under 10% of your gross monthly income. It is a rule of thumb, not a lender requirement.
Does a longer loan let me afford more car?
It raises the price you can reach but adds interest, and the car loses value faster than you pay it down. The term table shows how much the price changes with the term.