What percentage of income should go toward a car?

Many financial planners suggest keeping total transportation costs below 15 to 20 percent of gross household income. This calculator uses that range as a general reference, not a rule.

Does this include insurance and maintenance?

Yes. Enter your estimated monthly insurance, fuel or charging, and maintenance costs for a fuller picture of ownership.

Car Affordability Calculator

Estimate monthly payments and total ownership costs based on your household income, debt, and vehicle expenses.

Annual household income

Monthly debt payments

Vehicle price

Down payment

Loan term (months)

APR (%)

Monthly insurance estimate

Monthly fuel/charging estimate

Monthly maintenance estimate

Results

Estimated monthly payment: $587
Total monthly ownership cost: $992
Percent of gross monthly income: 14.0%
Affordability band: Comfortable
Suggested comfortable max: $708
Suggested upper limit (15%): $1,063

This calculator provides informational estimates only and does not constitute financial advice. Actual costs vary by lender, location, driving habits, and vehicle condition. Consult a qualified financial advisor for personalized guidance.

Common questions

What percentage of income should go toward a car?: Many financial planners suggest keeping total transportation costs below 15 to 20 percent of gross household income. This calculator uses that range as a general reference, not a rule.
Does this include insurance and maintenance?: Yes. Enter your estimated monthly insurance, fuel or charging, and maintenance costs for a fuller picture of ownership.