MyAutoCostBeta

MyAutoCost results are planning estimates. Actual rates, taxes, fees and vehicle costs vary.

Affordability by salary

How much car can I afford on my salary?

Enter your gross annual salary and expected running costs to see planning price ranges at three common income-share guidelines. Estimates for budgeting — not a loan approval.

Income
$

Before taxes and deductions

Financing
$
%
Term (months)
Monthly running costs
$/mo
$/mo
$/mo

Parking, tolls, maintenance set-aside

MyAutoCost

How much car can I afford on my salary?

Results and assumptions summary

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Moderate planning price (15%)

$30,387

Supports about $523/mo payment after $290/mo running costs

Conservative · 10% of gross

$542/mo total car budget → $252/mo payment

$16,710

Moderate · 15% of gross

$813/mo total car budget → $523/mo payment

$30,387

Upper guideline · 20% of gross

$1,083/mo total car budget → $793/mo payment

$44,065

What this means: on $65,000 a year ($5,417/mo gross), a car around $16,710–$30,387 keeps total car costs at 10–15% of income with these assumptions. Prices toward $44,065 reach the upper guideline. Running costs are already 5.4% of gross income.

Assumptions used
  • Total car budget = gross monthly income × tier share; payment = budget − running costs.
  • Price = loan the payment supports at your APR and term + down payment. Tax and fees are not separated out.
  • Does not consider other debts, housing, savings or credit approval.

Assumptions used

  • Total car budget = gross monthly income × tier share; payment = budget − running costs.
  • Price = loan the payment supports at your APR and term + down payment. Tax and fees are not separated out.
  • Does not consider other debts, housing, savings or credit approval.

Educational estimates only — not financial, tax or legal advice. Actual rates, taxes, fees and vehicle costs vary.

https://myautocost.com/car-affordability-by-salary

From salary to a car price range

Salary-based rules of thumb answer a simple question: what share of income should go to a car? Because insurance and fuel are part of that share, this calculator subtracts them first, then converts what remains into the loan a payment could support.

Method

Car budget = Salary ÷ 12 × Share (10%, 15% or 20%)

Payment = Car budget − Insurance − Fuel − Other

Price = Payment × (1 − (1 + r)^−n) ÷ r + Down payment, with r = APR ÷ 12.

Worked example

On a $65,000 salary, gross monthly income is about $5,417. At 15% that is a $813 car budget; after $290 of insurance and fuel, about $523 is left for the payment. At 7% over 60 months with $4,000 down, that supports a price of roughly $30,387.

Choosing a tier

  • 10% mirrors the transportation cap in the 20/4/10 rule of thumb.
  • 15% is a middle planning point. 20% is labeled an upper guideline.
  • None of these are universal standards; your own budget is the better guide.

Limitations

This is salary-only. For a check that includes rent or mortgage and other debts, use the full car affordability calculator. To see depreciation and maintenance on a specific car, try the true cost of ownership calculator.

Frequently asked questions

Educational estimates only — not financial, tax or legal advice. Results depend on the inputs you provide and simplified assumptions. Confirm rates, taxes and fees with lenders, dealers and insurers before making decisions.

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