Car Affordability Calculator

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Car Affordability Calculator

Find out how much car you can afford — monthly payment, total cost of ownership, and the 20/4/10 rule check.

🚘 Vehicle & Loan Details

$
$
20% recommended by the 20/4/10 rule
$
$
Leave 0 if no trade-in or paid off
%
Avg new car APR ~7–8% (2026)
≤ 48 months recommended
%
$

💵 Your Income & Ongoing Costs

$
Used for the 20/4/10 rule check
$
$
$
Oil changes, tires, repairs (~1–2%/yr of value)
Monthly Payment
Loan Amount
Total Interest
Total Cost of Car
Monthly Car Payment
Total Monthly Cost
payment + insurance + gas + maintenance
Total Interest Paid
Out-the-Door Price
price + tax + fees − trade-in equity

📏 20/4/10 Rule Check

📌 The 20/4/10 Rule: Put at least 20% down, finance for no more than 4 years, and keep total monthly car costs (payment + insurance) under 10% of your gross monthly income. This rule helps you avoid being “car poor.”

📊 Total Cost Breakdown

Cost ItemMonthlyOver Loan Term5-Year Total

ℹ️ How Car Affordability Is Calculated

Your monthly payment is calculated using standard loan amortization. We then layer in the true cost of car ownership — insurance, fuel, maintenance — to show you the full picture.

  • Loan amount: Vehicle price + sales tax + fees − down payment − trade-in equity (trade-in value minus amount owed).
  • Monthly payment: Calculated with standard amortization formula at your APR over the loan term.
  • 20/4/10 rule: A popular personal finance guideline — 20% down, 4-year max term, 10% max of gross income on car costs.
  • Depreciation: New cars lose roughly 15–25% of value in year one and ~50% over 5 years — factored into the 5-year cost estimate.

Actual loan offers depend on your credit score. Always get pre-approved and compare rates from multiple lenders before visiting a dealership.