Car Affordability Calculator
Determine your car budget, calculate monthly payments, and estimate total cost of ownership.
Car Affordability Calculator
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.
Info
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.
The shortest term possible is ideal. 36-48 months is common. Longer terms provide lower payments but total interest cost increases dramatically.
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.
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