Car Affordability Calculator
How much car can you afford? Turn your income or a monthly payment into the highest car price you can finance, with sales tax, fees, trade-in and today's average auto loan rates, and see how the loan term changes the answer.
How to use the car affordability calculator
Start with your gross income and the share of it you are willing to spend on a car payment, or type a fixed monthly payment instead. Add your down payment, any trade-in equity, your sales tax rate and fees, the loan term and your interest rate. The calculator works backward from the payment to the highest price you can pay, out the door, and shows how much of it is interest.
The rate starts at Experian's Q2 2026 average for new or used cars. Rates depend heavily on credit score; see auto loan rates by credit score and plug in your own quote.
How much car you can afford by income
Payment at 10% of gross monthly income, $5,000 down, 6.35% APR, 6% sales tax and $800 of fees:
| Gross income | Payment | 48 months | 60 months | 72 months |
|---|---|---|---|---|
| $40,000 | $333/mo | $17,261 | $20,092 | $22,749 |
| $50,000 | $417/mo | $20,586 | $24,124 | $27,446 |
| $60,000 | $500/mo | $23,911 | $28,157 | $32,143 |
| $75,000 | $625/mo | $28,898 | $34,206 | $39,188 |
| $100,000 | $833/mo | $37,210 | $44,287 | $50,929 |
| $125,000 | $1,042/mo | $45,522 | $54,368 | $62,671 |
| $150,000 | $1,250/mo | $53,833 | $64,449 | $74,413 |
Longer loans let the same payment buy a pricier car, but the extra price is mostly paid in interest, and the car loses value faster than a long loan's balance falls. If you already owe more than your current car is worth, see what that does to the next loan in our car loan calculator.
Rules of thumb, and what lenders check
- 10% of gross income for the payment is a common ceiling; some guides use 15% to 20% for all car costs, insurance and fuel included.
- 20/4/10: 20% down, a loan of 4 years or less, total car costs under 10% of income. Strict, but it keeps you from owing more than the car is worth.
- Lenders look at your total debt-to-income ratio and credit score rather than a car-only rule, so they may approve far more than is comfortable.
Compared with today's typical loan, the average new-car payment was $765 a month on a $43,610 loan in Q2 2026, according to Experian; see average car payment.
Ways to afford more car without a bigger payment
- Save a larger down payment: every dollar down is a dollar you do not pay interest on.
- Raise your credit score before you shop, and get a pre-approval from a bank or credit union to compare with the dealer's offer.
- Consider a used car: the purchase price is lower, though used-car rates run higher (11.19% on average vs 6.35% for new in Q2 2026).
- Leasing lowers the payment but you own nothing at the end; compare in lease vs buy a car.
Frequently Asked Questions
How much car can I afford on $75,000 a year?
About $34,206 with a 60-month loan, if you keep the payment to 10% of gross income ($625 a month), put $5,000 down and borrow at 6.35%, with 6% sales tax and $800 of fees. A 48-month loan at the same payment buys about $28,898.
What percentage of income should go to a car payment?
A common rule of thumb is no more than 10% of gross monthly income for the loan payment, or about 15% to 20% for all car costs including insurance, fuel and maintenance. These are guidelines, not lender rules; lenders look at your total debt-to-income ratio instead.
What is the 20/4/10 rule for buying a car?
A rule of thumb: put at least 20% down, finance for no more than 4 years, and keep total car costs under 10% of gross income. It is stricter than what most buyers do: Experian's average loan term in Q2 2026 was about 70 months for new cars.
Is it better to have a lower payment or a shorter loan?
A shorter loan costs less in total. At $625 a month, a 48-month loan buys a car of about $28,898 with $3,568 of interest; stretching to 84 months buys about $43,864 but costs $10,204 of interest, and you owe more than the car is worth for longer.
Does the calculator include insurance and gas?
No. It sizes the loan only. Insurance, fuel, registration renewals and repairs come on top, so leave room for them in your budget; see the average car insurance cost for a starting point.
