Incolator
Incolator/Spending & savings/How Much Car

Spending & savings · 2 min

How Much Car

Car affordability advice is written by people selling cars, which is why it prices the payment and forgets the car. This instrument works from the house line — all-in vehicle cost at 10% of net income — backwards through insurance, fuel, maintenance and the depreciation nobody budgets, to the purchase price that line actually buys.

Currency-agnostic · symbol only Rules version 1.0 Reviewed July 2026

Your details

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All-in drive-away price.

% / yr

Mainstream cars shed 10–15% a year in the first five; the badge changes the number less than the mileage does.

Σ/ yr
Σ/ yr
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% / yr

Everything is calculated in your browser as you type. Nothing you enter is sent or stored, and no account is needed.

Your result

Within the line.

$16,860

the all-in annual bill of the car you're pricing

The all-in bill

Depreciation — the invisible payment
Capital cost — what the price forgoes each year
Insurance, fuel, upkeep
All-in, per year
The price the 10% line affords you

Three price points, same income

If the car costsAll-in / yrShare of net

What moves this result

Worth checking

Depreciation is the payment you make whether you finance or not — the car takes it directly out of resale. A three-year-old car hands most of it to the first owner.

The 10% line prices transport, not identity. If the car is genuinely the hobby, budget it as one — from the same pool as the boat and the watches, with open eyes.

Two cars double everything except the fuel. Run the household's fleet through this page, not one vehicle at a time.

Common questions

How much car can I afford on my salary?
The house convention: all-in vehicle cost — depreciation, capital or finance cost, insurance, fuel, upkeep — at or under 10% of net income. On $240,000 net that's a $24,000 annual budget, which after running costs affords roughly a $100,000 car; on $60,000 net, roughly a $25,000 one.
What's the real cost of owning a car per year?
Sticker-price thinking misses most of it. A $62,000 car at 12% depreciation loses $7,400 a year before it moves; add ~$3,700 of forgone return on the capital and ~$5,700 of insurance, fuel and upkeep, and the honest annual bill is about $16,900 — two-thirds of it invisible.
Is the 20/4/10 car rule any good?
It's finance-shaped: 20% down, 4-year loan, payments under 10% of income — sensible guardrails for a loan, silent about depreciation and running costs. This instrument's 10% line covers the whole bill, so a car that passes here passes 20/4/10 with room to spare.
How this is calculated

Everything below is calculated from your inputs. Depreciation and market return are assumptions you control.

all_in = price × dep + price × r + insurance + fuel + upkeep line = 10% of net income afford = (0.10 × net − running) / (dep + r)

The gauge reads the all-in bill against net income, the house line at 10% — transport as a utility. Capital cost charges the purchase price at your market return, because money parked in a driveway also stopped compounding; financing swaps that term for interest at a similar magnitude.

Limitations. Depreciation curves are steepest in years one to three and flatten after; a single rate averages them. Financing costs, brand-specific resale and the second car are yours to layer on.