How Much Car Can I Afford?

The best car budget starts with monthly cash flow, not the vehicle you want. A car is affordable only if the payment and ownership costs fit after housing, food, insurance, savings, debt payments, and emergency expenses.

Start with income

Many buyers try to keep the loan payment below 10% to 15% of take-home pay. Total transportation cost is often safer below 20% to 25%, especially if your income varies or you have other debts.

Include all recurring costs

Stress-test your budget

Before buying, test what happens if insurance is $50 higher, fuel rises, or you need a repair. If the budget only works under perfect assumptions, the car may be too expensive.

Use the reverse calculator to see what car price matches a payment you can comfortably afford.