What Car Can I Afford?

Car Affordability by Salary

Browse our comprehensive guides to find out what car you can afford based on your annual salary. Each page provides instant affordability calculations using the conservative 20/4/10 rule, showing you safe, stretch, and maximum budgets for your income level.

Select your salary range below to see detailed affordability recommendations and budget breakdowns.

Jump to salaries:

Salaries from $25K - $100K
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Salaries from $100K - $300K
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Salaries from $300K - $500K
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Salaries from $500K - $1M
$550K$600K$650K$700K$750K$800K$850K$900K$950K$1.0M

How We Calculate Affordability

Our salary-based affordability guides use the 20/4/10 rule, a conservative financial guideline that helps you make responsible car-buying decisions:

  • 20% down payment: Put at least 20% down to reduce your loan amount
  • 4-year loan maximum: Finance for no more than 48 months to minimize interest
  • 10% of gross income: Keep total car expenses at or below 10% of your gross monthly income

We provide three budget ranges: a safe range (10% of income), a stretch range (15% of income), and a lender maximum (based on 36% total debt-to-income ratio). Choose the budget that best fits your financial situation.

These estimates are based on gross (pre-tax) income and do not adjust for federal, state, or local taxes. For tax-adjusted results, enter your annual take-home pay instead of gross income in the calculator.

Frequently Asked Questions

How much car can I afford on my salary?▼
A good rule of thumb is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, maintenance) under 10% of your gross monthly income. For example, on a $75,000 salary, you should aim for a car priced around $25,000–$30,000.
What is the 20/4/10 rule for buying a car?▼
The 20/4/10 rule is a conservative car-buying guideline: put at least 20% of the car's price as a down payment, finance the car for no more than 4 years (48 months), and keep total monthly vehicle expenses — including loan payment, insurance, and maintenance — at or below 10% of your gross monthly income.
How much of my monthly income should go to a car payment?▼
Financial experts recommend keeping your total monthly car expenses — including your loan payment, insurance, and maintenance — under 10% of your gross monthly income for a safe budget. Stretching to 15% is possible but may strain other financial goals. Lenders may approve up to 36% of your income for total debt, but that includes all debts, not just your car.
What salary do I need to afford a $30,000 car?▼
Using the 20/4/10 rule with a $6,000 down payment (20%), a 48-month loan at 6.5% interest, plus insurance and maintenance costs, you would need a salary of approximately $60,000–$70,000 per year to comfortably afford a $30,000 car. Use our salary calculator pages for exact figures based on your income.
Should I buy a new or used car based on my salary?▼
Whether to buy new or used depends on your budget after applying the 20/4/10 rule. If your salary supports a safe budget of $20,000 or less, a quality used car is usually the smarter choice. If your safe budget is above $25,000, you have more flexibility to consider new vehicles. Remember that new cars depreciate 20–30% in the first two years.

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