Calculator

Car Affordability Calculator

Using the 10/20 rule and debt-to-income guardrails, this tool estimates a safe monthly payment and the max vehicle price you can afford.

Max vehicle price
$41,428.98
Price you can safely afford
Target monthly payment
$750.00
Lower of 10%-of-income or DTI cap
10% of income
$750.00
Example monthly payment at max
$750.00

Frequently Asked Questions

What is the 10/20 rule?+

A common personal-finance guideline: total vehicle expenses (payment + insurance + fuel + maintenance) should be under 10% of gross monthly income, and your loan term should be under 20% of your remaining working years.

What DTI do lenders look for?+

Most auto lenders cap total debt-to-income at 40–50%. Some prime lenders want under 36%. We use 10% of gross income as a safer default target for car payment alone.

Why is this lower than what I'm 'approved' for?+

Lenders will often approve more than you should actually spend. This calculator shows what you can comfortably afford without squeezing the rest of your budget.

Stop losing vehicles in the recon process

Dealer1 is the all-in-one platform dealerships use to manage inventory, reconditioning, estimates, parts tracking, deliveries, team chat, customer messaging, and more — with AI tools built in.

Start Your Free 30-Day Trial →

All features included. No commitment for 30 days.

Related free tools