Car Affordability Calculator
Find out how much car you can really afford based on YOUR income using real costs, not just payments.
Based on 5-year depreciation and real costs
Your Income
Your pre-tax income (before taxes and deductions)
Vehicle Details
Full coverage estimate
Oil changes, tires, repairs
Opportunity cost of capital
Copies current inputs to your clipboard
Income Breakdown
5-Year True Cost (by Category)
What Car Can You Afford?
Conservative (Budget)
$20,000 vehicle
Toyota Corolla, Honda Civic
Recommended (Balanced)
$25,000 vehicle
Based on your 10% budget
Maximum Stretch
$35,000 vehicle
15% of income (risky)
Key Insight
The 10% rule states that total transportation costs (car + insurance + fuel + maintenance) shouldn't exceed 10% of your gross income. This includes the opportunity cost—money that could have been invested instead of tied up in your vehicle. Most people ignore this and end up car-poor.
Real Cost is 3x the Payment
A $500/month car payment feels manageable, but true cost is $400 payment + $150 fuel + $100 insurance + $50 maintenance = $700/month real cost.
Depreciation is Hidden
Your car loses 20% value year 1 (not a monthly bill). Over 5 years, depreciation often exceeds the purchase price in total True Cost.
Opportunity Cost Matters
$25,000 in a car earning 0% return vs. $25,000 invested at 7% = $1,750/year in foregone wealth. Over 20 years, that's $87,500 lost.