How Much Car Can I Afford?
Enter your income to see your budget instantly
You can comfortably afford
or less for your next car
$239
Payment
$202
Insurance + Gas
$441
Total/month
That's 8% of your monthly income · Experts recommend under 15%
Smart range
$10k - $13k
Loan terms
48 months @ 7%
With $3k down
Finance $10k
How we calculate this
We recommend spending 15-20% of your annual income on a car. At $65,000/year, that's $10k-$13k. This keeps your total monthly car costs (payment + insurance + gas) under 15% of your take-home pay, leaving room for savings and other goals.
Common Questions
How much car can I afford on my salary?
A practical guideline is to spend 15-20% of your annual income on a car. For someone making $60,000/year, that means a car in the $9,000-$12,000 range. This keeps your total car costs (payment + insurance + gas) at a comfortable level.
What percentage of income should go to a car?
Aim to keep your total monthly car costs under 15% of your take-home pay. This includes your car payment, insurance, gas, and maintenance. Going above this can make it harder to save for other goals like retirement, emergencies, or a home.
How does credit score affect what I can afford?
Your credit score directly impacts your interest rate. With excellent credit (750+), you might get 5-6% APR. With fair credit (650-699), expect 10-12%. The higher your rate, the more you pay in interest, which means you can afford less car for the same monthly payment.
Should I buy new or used?
Used cars (2-4 years old) typically offer the best value. They've already taken the biggest depreciation hit (new cars lose 20-30% in year one) while still having modern safety features. Certified pre-owned programs offer warranty coverage for added peace of mind.
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