How much car can I afford?

General rule: Car price should not exceed half your annual net income, and monthly payment should not exceed 15-20% of income. Total monthly car cost (payment + fuel + insurance + maintenance) should not exceed 25% of income.

What is the ideal auto loan term?

The shortest term possible is ideal. 36-48 months is common. Longer terms provide lower payments but total interest cost increases dramatically.

What is total cost of ownership?

Car price (down payment + loan + interest) + running costs (fuel, insurance, maintenance, tax, inspection, parking) combined. Over the loan term, this total can reach 1.5-2x the car price.

Car Affordability Calculator

Results

Max Car Price You Can Afford

Monthly Payment

Maximum Loan

Total Interest

Payment / Income

Monthly Total (Payment + Expenses)

Cost of Ownership Breakdown

Total Cost of Ownership

Term Comparison

Term	Car Price	Monthly Payment	Total Interest	Total Cost

Income Level Comparison

Income	Monthly Payment	Maximum Loan	Car Price

This calculator is for informational purposes only. Results are estimates and may differ from actual values.

Car Buying Guide

Car Budget Rule

Financial experts recommend the car price should not exceed half your annual net income. Monthly car payment should not exceed 15-20% of income. Fuel, insurance, and maintenance should also be factored in.

Tips

Pay a high down payment — less interest, lower payments.
Choose a short term — total interest cost drops significantly.
Used cars have less depreciation.
Include insurance, maintenance, and fuel costs in your budget.
Compare offers from different banks and authorized dealers.

Car Affordability Calculator