How Much Car Can I Afford?
Enter your income to see your budget instantly
You can comfortably afford
or less for your next car
$395
Payment
$228
Insurance + Gas
$623
Total/month
That's 12% of your monthly income · Keep total car costs under 15%
Max car value
$20k
Loan terms
48 months @ 7%
With $3k down
Finance $17k
How we calculate this
We use the 30% rule: your car's value shouldn't exceed 30% of your gross annual income. At $65,000/year, that's a max of $20k. This keeps your total monthly car costs (payment + insurance + gas) manageable, leaving room for savings and other goals.
Common Questions
How much car can I afford on my salary?
The 30% rule says your car's value should not exceed 30% of your gross annual income. For someone making $60,000/year, that means a max car value of $18,000. This keeps your total car costs (payment + insurance + gas) at a comfortable level.
What percentage of income should go to a car?
The 30% rule recommends your car's value should not exceed 30% of your gross annual income. This keeps your monthly costs for payment, insurance, gas, and maintenance manageable. Staying within this limit helps you 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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