"How much car can I afford?" is usually answered with a monthly payment: the dealer asks what you'd like to pay and works backwards. That skips the costs that arrive after you drive off — and they add up to hundreds of dollars a month.
The rule we use
Keep total car costs — loan payment, gas, insurance, maintenance and registration — at a set share of your gross (pre-tax) income:
- 10% — conservative. This is the classic 20/4/10 rule: 20% down, a loan of 4 years or less, and total vehicle costs under 10% of income.
- 15% — comfortable. Our recommended budget for most households.
- 20% — stretch. Doable, but leaves little room for repairs, rate hikes or income changes.
Car price you can afford, by salary
Assumes 20% down, a 48-month loan at 6.5% APR, 13,500 miles a year and national-average running costs. Click a salary for the full breakdown, including the best and worst states.
| Salary | 15% budget / month | Conservative (10%) | Comfortable (15%) | Stretch (20%) |
|---|---|---|---|---|
| $40,000 | $500 | $1,500 | $10,500 | $18,000 |
| $50,000 | $625 | $6,000 | $16,500 | $24,500 |
| $60,000 | $750 | $10,500 | $21,000 | $31,000 |
| $75,000 | $938 | $16,500 | $28,500 | $40,500 |
| $90,000 | $1,125 | $21,000 | $36,000 | $50,000 |
| $100,000 | $1,250 | $24,500 | $40,500 | $55,500 |
| $120,000 | $1,500 | $31,000 | $50,000 | $67,000 |
| $150,000 | $1,875 | $40,500 | $62,500 | $91,500 |
| $200,000 | $2,500 | $55,500 | $91,500 | $135,500 |
Three things the table reveals
1. Running costs take a big bite at lower incomes
On $50,000 a year, the comfortable budget is $625 a month — but around $311 of that is gone on gas, insurance and upkeep before you make a single payment. That's why the affordable price climbs slowly at first, then much faster as income rises.
2. New cars start above many comfortable budgets
The cheapest new 2027 car in our catalog starts around $22,890. Below roughly $65,000 a year, a new car only fits the stretch budget — a 2–4-year-old used car is the smarter buy.
3. A longer loan is a costly way to "afford" more
On $75,000, going from a 48- to a 72-month loan raises the comfortable price from $28,500 to $36,500 — and adds $2,988 in interest, while you owe more than the car is worth for longer.
Get your exact number
Your state, ZIP code and the specific car change the answer a lot — insurance alone can vary by more than double between states. The free Cash Pedal affordability calculator uses your location and shows matching 2027 models; the salary calculator works the other way, from a car's price to the income you need. Browse every income and price level in our affordability guides.