How Much Car Can I Afford?
Updated
Use payment-to-income tiers and a holistic budget approach to set a realistic auto budget.
A reasonable auto payment is 10–15% of gross monthly income — 20% is a stretch. The right number for you also depends on other debts, savings goals, and the full cost of insurance, fuel, and maintenance.
A common rule of thumb is to keep your auto payment at or below 10–15% of gross monthly income. Above 20% is usually a stretch. The right number depends on your other debts, savings goals, fuel/insurance/maintenance costs, and lifestyle.
Our affordability calculator shows conservative, moderate, and stretch tiers with optional all-in costs.