Car Affordability Calculator
What your income actually supports, using the 20/4/10 rule — not what a dealer will approve you for.
✏️ These numbers were filled in from a shared link — change anything to make it your own.
The 20/4/10 rule
- 20% down — protects you from being underwater the moment you drive off.
- 4 years max — if you need longer to afford it, the car is too expensive.
- 10% of gross income — covering payment, insurance, and fuel combined.
Two separate ceilings apply, and this calculator takes whichever is lower:
payment ceiling → max loan + your down payment
down payment ceiling → your savings ÷ 20%
If your savings are the binding constraint, more income will not help — you need a bigger down payment. If the payment is binding, saving more will not help much either. The result above tells you which.
Found a car in range? Check what it truly costs with the True Cost to Own Calculator, and confirm the financing in the Auto Loan Calculator.
A budgeting guideline, not a lending decision. Excludes maintenance, registration, and parking. General information, not financial advice.
Frequently asked questions
How much car can I afford on my salary?
The widely used 20/4/10 guideline says: put at least 20% down, finance for no more than 4 years, and keep total transportation costs — payment, insurance, and fuel — under 10% of your gross income. This calculator applies all three at once and shows you which one is actually limiting you.
Why is this lower than what the dealer approved me for?
Because lenders and dealers are answering a different question. They are estimating what you can repay without defaulting, not what leaves your budget healthy. Approval amounts routinely stretch well past the 10% transportation guideline, and the longer terms used to make the payment fit add interest and keep you underwater.
Is the 20/4/10 rule too strict?
It is deliberately conservative, and in high-cost areas where a car is non-negotiable it can feel unrealistic. Treat it as a healthy target rather than a hard limit — but understand what you are trading away when you exceed it. Stretching the term is what most buyers do, and it is the most expensive of the three levers to bend.
Should insurance and fuel really count?
Yes — that is the point of the 10% part. A cheap car with expensive insurance can cost more per month than a pricier car with cheap insurance. Budgeting for the payment alone is how people end up surprised, so this tool subtracts insurance and fuel before working out what is left for a payment.