How Much Car Can I Afford?

There are so many variables involved and this calculator can help.

First, think about your disposable income. That is income you have available to spend, and that is what you need to consider in getting a car.

Start with your monthly take home pay, and start subtracting out ALL your expenses. These include rent or mortgage, food, insurance, other loan payments, gasoline and car maintenance, credit card payments, heat, light, power and phone, entertainment, savings (at least 10 percent of your take home), everything. What is left over? That’s the maximum you could possibly spend on a car payment each month. Don’t spend all your disposable income on a car, but that process will give you an idea how much you can afford.