Car Affordability Calculator (20/4/10 Rule)
Find how much car you can afford with the 20/4/10 rule, and the total monthly cost of owning it — payment, insurance, fuel and maintenance.
How to use
- 1Enter your gross monthly income, the loan rate and your expected insurance, fuel and maintenance costs.
- 2See the maximum price under the 20/4/10 rule and the full monthly cost.
How it's calculated
20/4/10: at least 20% down, a loan of no more than 4 years, and total car costs (payment + insurance + fuel + maintenance) under 10% of gross income.
Frequently asked questions
Is the 20/4/10 rule strict?
It's a conservative guideline. Many people spend more, but staying near it leaves room for saving and other goals.
What's included in total cost of ownership?
Depreciation, financing, insurance, fuel, maintenance, repairs, registration and parking.
Should I include depreciation?
It isn't a monthly bill, but it's usually the biggest cost of owning a new car — see the depreciation calculator.