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Car affordability calculator

Find a sensible monthly and yearly car budget from your income.

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The Car affordability calculator turns Monthly net income, Share for the car (%) into Max monthly budget, Max yearly budget, instantly and for free. For instance, with Monthly net income = $3,000.00 and Share for the car (%) = 15 it returns Max monthly budget = $450.00 and Max yearly budget = $5,400.00.

How to use it

  1. Enter your values: Monthly net income, Share for the car (%).
  2. Read the result instantly: Max monthly budget, Max yearly budget.

Frequently asked questions

How does the Car affordability calculator work?

It takes Monthly net income and Share for the car (%) and derives Max monthly budget and Max yearly budget from them. The calculation is live as you type, so the result updates on every change.

Which values does the calculator ask for?

2 values: Monthly net income ($) and Share for the car (%). Nothing else is required — no account, no file upload.

What does a typical calculation look like?

With Monthly net income = $3,000.00 and Share for the car (%) = 15, the calculator returns Max monthly budget = $450.00 and Max yearly budget = $5,400.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

How much does the result change with different inputs?

It moves a lot. Using Monthly net income = $6,000.00 and Share for the car (%) = 17 instead, Max monthly budget goes from $450.00 to $1,020.00 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Monthly net income = $1,500.00 and Share for the car (%) = 14, Max monthly budget comes out at $210.00. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Deciding between two cars, or between keeping one and replacing it: fuel or charging, insurance, depreciation and what a kilometre really costs.

What is the most common mistake?

Comparing on fuel alone. Depreciation is usually the largest line in the first years and dwarfs the difference in consumption between two comparable cars.

How accurate is it, and what are the limits?

Estimate only — not financial advice.

What is the difference between the Car affordability calculator and the Car lease calculator?

This one returns Max monthly budget and Max yearly budget; the Car lease calculator returns Monthly payment and Residual value. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Car depreciation calculator is the closest one after this: Estimate a car's residual value after several years.

Further reading

All guides →
How-toHow Much Car Can I Afford? The 20/4/10 Rule ExplainedFigure out a realistic car budget using the 20/4/10 rule, income limits, and total cost of ownership — not just the sticker price on the window.GuideThe Price You See and the Price You Sign: Building an Out-the-Door NumberAn advertised $32,000 car leaves the lot at $36,399 before any trade-in — $2,324 of sales tax, $500 of doc fee, $375 of title and registration and $1,200 of add-ons. Strip the add-ons and the irreducible gap is $3,115, or 9.73 percent of the sticker.ExplainerHow Fast Do Cars Depreciate? The Value CurveNew cars lose value fastest in year one, then 15–20% a year. See the depreciation curve, why the first year hits hardest, and a worked example.GuideTowing Capacity: the Limit That Stops You FirstThere is no single towing capacity. There are four or five separate limits, and the one that binds is rarely the tow rating on the brochure — it is usually the vehicle's own weight budget, quietly consumed by the people sitting in it.How-toHow Much Rent Can I Afford? The 30% Rule and 40x RentSet a realistic rent budget with the 30% rule and the 40x-rent test, and learn why using net income instead of gross keeps you on safer ground.ExplainerA Company Car Is Pay: What the Benefit in Kind Costs You in France, Germany and ItalyNobody negotiates a company car as a pay cut, but that is what the tax treatment makes it. Three countries value the same car by three completely different methods, one of them changed in 2025 in a way that nearly doubled the figure, and in all three an electric car is taxed at a fraction of the same vehicle with an engine.