Your numbers
Your own estimate. The 10% in 20/4/10 covers total car costs.
Car you can afford
Estimates only, based on the numbers you enter and the rules shown. Not financial advice. Your lender or provider will use its own checks.
The 20/4/10 rule
- 20: put down at least 20% of the price.
- 4: borrow for no more than 4 years (48 months).
- 10: keep total car costs (payment, insurance, running costs) to 10% of gross monthly income.
This is a popular rule of thumb, not an official standard. Some versions count only the payment and insurance. We include the running costs you enter so you see the full picture.
Ways to make a car more affordable
- Compare loan offers from banks and credit unions before you go to the dealer.
- Consider a reliable used car.
- Look at the total cost, not just the monthly payment: longer loans mean more interest.
Sources: CFPB: auto loans
Already have a car loan? See how fast you could clear it with the car loan payoff calculator.
Frequently asked questions
How much car can I afford making $60,000 a year?
With the 20/4/10 rule, $60,000 a year allows about $500 a month for all car costs. The calculator works out the price from your down payment, rate and running costs.
Is a 72-month car loan a bad idea?
Longer loans lower the monthly payment but cost more interest and can leave you owing more than the car is worth. The 20/4/10 rule suggests 48 months or less.
Does the price include taxes and fees?
Treat the result as the total you can spend, including sales tax, registration and dealer fees.