How much car can I afford on my salary?

A common ceiling is 15% of monthly take-home pay for everything car — payment, insurance and gas together. On $4,200 take-home that is a $630 budget, which after typical insurance and gas supports roughly a $17,000–$18,000 car with $3,000 down at 2026 rates.

What is the 20/4/10 rule for buying a car?

Put at least 20% down, finance for no more than 4 years, and keep total car costs — payment, insurance, fuel — under 10% of your income. It is conservative by design; it keeps a car from crowding out savings.

Are 72 and 84 month car loans bad?

They lower the payment but raise total interest sharply and keep you owing more than the car is worth for years. If a car only fits with an 84-month loan, the honest reading is that it does not fit.

How Much Car Can I Afford — Honest Budget Calculator

Your car budget, split

How we got your price

The loan-length trap

Longer loans “afford” a bigger sticker (solid), but look at the interest line (dashed) climbing under it. The dot is your term. Hover to compare.

Before the dealership

How we calculate

What is included

Your whole car budget is a share of monthly take-home (10 / 15 / 20%). Insurance and gas come out first; what remains is the loan payment. The payment supports a loan at your rate and term; loan plus down payment is the car price. Total interest over the term is shown honestly next to it.

What is estimated or left out

Sales tax, title and registration (roughly 5–10% of the price depending on the state) are not folded in — treat the result as the out-the-door ceiling, not the sticker ceiling. Maintenance and repairs are extra; older cars trade payment for repair risk. Insurance varies hugely by age, record and state — get a real quote for the exact model before signing anything.

The formula, in plain words

car budget = take-home × share (10–20%)
payment    = car budget − insurance − gas
loan       = what that payment supports at your rate and term
car price  = loan + down payment

Common questions

What is the 20/4/10 rule?: An old dealer-resistant rule: 20% down, a loan no longer than 4 years, and all car costs under 10% of income. It maps to “Frugal” here. Most Americans run closer to 15% — fine, as long as it is a choice and not a surprise.
Why not just stretch to 84 months?: The payment falls, but three traps open: you pay far more interest, you are “underwater” (owing more than the car is worth) for years, and the car ages out of warranty while you still owe on it. The chart above prices the first trap in dollars.
New or used?: A new car loses roughly 20–30% of its value in the first two years — the steepest depreciation money can buy. A 2–3-year-old car with a clean history usually gives the best cost per year. Whatever you pick, negotiate the price, never the payment.

How Much Car