How Much Car Can I Afford?
Instead of asking what a car costs, ask what you can afford. This calculator works backward from your income and existing debts to a comfortable monthly payment, then to the vehicle price that payment supports at your down payment, APR and term.
It applies the lender-style rule that total debt payments stay under about 36% of gross income, and that the car payment itself stays a modest share of pay — so the number it returns is a ceiling to shop under, not a target to hit.
Calculator
Car price you can afford
$45,172
About $825/mo payment
Max payment
$825
Max loan
$41,172
+ Cash & trade-in
$4,000
Calculation Formulas
The lower of the total-debt ceiling and a sensible car-only share of gross income.
The loan a payment supports is the present value of an annuity; the down payment is added back.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Total debt ceiling | ≤ 36% of gross | Common lender debt-to-income guideline. |
| Car-payment share | ~10–15% of gross | A conservative ceiling for the car payment alone. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: November 2026
- Debt-to-income (DTI) lending guidelines
The 36% total-debt rule is a standard underwriting benchmark; treat the result as a ceiling to shop under, not a target.
How to use this calculator
- Enter your gross monthly income and your current monthly debt payments.
- Enter the cash down payment (and trade-in) you plan to put toward the car.
- Enter the APR you expect and the loan term you are comfortable with.
- Read the maximum payment and vehicle price that fit your income.
Frequently Asked Questions
How much car can I afford on my salary?
Work backward from your income: keep total debt payments under about 36% of gross income and the car payment itself to a modest share. The calculator turns that into a maximum price at your APR and term.
Should I use the 20/4/10 rule?
It is a reasonable starting point — 20% down, a loan no longer than 4 years, and total car costs under 10% of income. This calculator uses a similar payment-to-income approach you can adjust.
Does a bigger down payment let me afford more car?
Yes — the price you can afford is the loan your payment supports plus your down payment, so more cash down raises the ceiling and lowers your interest.
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