Car Affordability Calculator
Estimate the car price that fits your income, existing debts and target payment — so transportation doesn't break the budget.
Inputs
Result
Visual breakdown
Formula
Max payment = min(target % × income, 36% × income − existing debts). Affordable price is the loan that payment supports plus your down payment.
Example
$6,000 take-home, $500 debts, 10% target, $3,000 down, 6% APR / 60 mo → about $600/mo and ≈ $34k car.
Related: Monthly budget · Auto loan · Total ownership
How to use
- Use take-home income, not gross.
- Include all recurring debt payments — student loans, credit cards, mortgage, etc.
- Pick a target % you actually want to spend on transportation.
When it's useful
- Setting a budget before shopping.
- Comparing payment vs total cost of ownership.
- Re-checking after a raise or new debt.
Common examples
Frequently asked
What's a healthy car-payment-to-income ratio?
Many planners suggest keeping car payments under ~10% of take-home and total transportation under ~15–20%.
Is this the same as DTI?
DTI is total debt payments / gross income. We add a 36% DTI cap as a guardrail, then the lower of that and your target % wins.
Should I include insurance and fuel?
This calculator focuses on the loan payment. Use the Total Car Ownership Calculator for the all-in monthly number.
People also calculate
More money & work →Estimates only — not financial advice. See how transportation costs affect your monthly budget, runway, and flexibility.