For most people, buying a car is a major purchase. Depending on your financial situation, such an expense may not be justified.
You can use our car affordability calculator to find out what price range you can afford based on your income, down payment, loan interest rate, and other factors. However, the main factor underlying the calculation is your salary.
Can I Afford This Car?
Enter your income and car details to see an honest affordability breakdown.
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⚠ Please fill in your salary and car price correctly.
Car Price / Annual Salary ratio
Monthly net take-home (est.)
Monthly loan repayment
Total monthly car cost (loan + running)
% of monthly net income
Total loan cost (with interest)
Total Monthly Cost as % of Take-Home Pay
- Net Monthly ≈ (Annual Salary × 0.75) ÷ 12 [25 % blended tax estimate]
- Monthly Car Burden = Loan Payment + Running Costs
- Burden % = Monthly Car Burden ÷ Net Monthly × 100
Financial planners generally recommend keeping total car costs under 15 % of net income (comfortable) or 20 % max (stretch).
Combining loan payment with everyday running costs (insurance, fuel, road tax) gives users a realistic picture of what the car will actually cost them each month.