---
title: "Car affordability calculator With Latest Published Rates | The Loan Week"
description: "Use your exact income, monthly bills, transport costs, down payment and loan quote to estimate a car budget. Compare the 20/4/10 guideline with your own…"
url: https://theloanweek.com/calculator/car-affordability/
updated: 2026-09-27
site: "The Loan Week"
language: en
---

# Car affordability calculator

Adjust the amount, rate and assumptions, then select Calculate.

Change inputs and assumptions ↓

Estimated car price ceiling

$10,346

Transport budget $500.00/month from exact gross annual income $60,000.00. Loan at 7.47% over 48 months.

$200.00 for the loan after $300.00 for insurance, fuel and upkeep. This is an editable budget scenario, not a lending decision.

- Cash down: $2,069.12 (20%). Sales tax: 0%; check your combined local rate.
- The initial $300 monthly running-cost input is an illustration; replace it with your own costs. Fees and trade-in debt are excluded.
- Gross-income budgets do not subtract payroll taxes. Choose net income to use your take-home pay.

*Chart: Of $9,600 in loan payments, $8,276 repays the loan and $1,324 is interest.*

- **Total interest**: $1,324
- **Total loan payments**: $9,600
- **Interest per dollar of loan payments**: 14¢

Source: Default rate: Federal Reserve G.19, May 2026 survey. An average, not an offer.

[Reset to default inputs and latest published average](https://theloanweek.com/calculator/car-affordability/)

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## Your plan and the 20/4/10 comparison

The gross-income guideline combines 20% down, a maximum four-year loan and all transportation costs within 10% of gross income. Your own plan uses the income basis, running costs and budget you entered. Neither column is a lending decision.

**Same entered interest rate and sales tax; running costs reserved inside each budget**

| Assumption or result | Your plan | 20/4/10 with gross income |
| --- | --- | --- |
| Total transport budget / month | $500.00 | $500.00 |
| Insurance, fuel and upkeep / month | $300.00 | $300.00 |
| Available loan payment / month | $200.00 | $200.00 |
| Vehicle price ceiling | $10,345.58 | $10,345.58 |
| Cash down | $2,069.12 | $2,069.12 |
| Financed sales tax | $0.00 | $0.00 |
| Amount financed | $8,276.47 | $8,276.47 |
| Interest over the loan | $1,323.53 | $1,323.53 |
| Down payment | 20.00% | 20% |
| Loan term | 48 months | 48 months |

The gross 10% envelope is $500.00/month, capped here at the amount left after your entered bills.

A longer loan can lower the payment while increasing interest. Both columns use the same entered rate to isolate the budget and term assumptions; a lender may quote a different rate for 48 months. Fees, trade-in debt and future changes in running costs are excluded. Gross-income calculations do not automatically subtract payroll taxes.

[Chase's 20/4/10 explanation](https://www.chase.com/personal/auto/education/buying/what-is-the-20-4-10-rule-for-car-buying), reviewed September 27, 2026. Enter a budget that also leaves room for your other expenses and savings.

## Amortization schedule

[Create a dated schedule with extra payments](https://theloanweek.com/calculator/amortization/)

Payment totals include regular principal, extra principal and interest. Annual lump sums are part of the Extra column. CSV separates monthly and annual extras. Calculations keep full precision; displayed rows and totals are rounded independently.

*Chart: Principal and interest paid each year on the budgeted car loan. Each column is one loan year, split into principal repaid and interest paid. Principal is the larger part from the first year.*

### First 12 months

**Amortization schedule for the budgeted car loan at 7.47% over 48 months, months 1–12; first payment $200.00. The final payment may be smaller.**

| Payment | Total payment | Regular principal | Extra | Interest | Balance |
| --- | --- | --- | --- | --- | --- |
| 1 | $200.00 | $148.48 | $0.00 | $51.52 | $8,127.99 |
| 2 | $200.00 | $149.40 | $0.00 | $50.60 | $7,978.58 |
| 3 | $200.00 | $150.33 | $0.00 | $49.67 | $7,828.25 |
| 4 | $200.00 | $151.27 | $0.00 | $48.73 | $7,676.98 |
| 5 | $200.00 | $152.21 | $0.00 | $47.79 | $7,524.77 |
| 6 | $200.00 | $153.16 | $0.00 | $46.84 | $7,371.61 |
| 7 | $200.00 | $154.11 | $0.00 | $45.89 | $7,217.50 |
| 8 | $200.00 | $155.07 | $0.00 | $44.93 | $7,062.43 |
| 9 | $200.00 | $156.04 | $0.00 | $43.96 | $6,906.39 |
| 10 | $200.00 | $157.01 | $0.00 | $42.99 | $6,749.39 |
| 11 | $200.00 | $157.99 | $0.00 | $42.01 | $6,591.40 |
| 12 | $200.00 | $158.97 | $0.00 | $41.03 | $6,432.43 |

### Year by year

**Totals for each loan year**

| Loan year | Total paid | Principal incl. extras | Interest | Balance at year end |
| --- | --- | --- | --- | --- |
| 1 | $2,400 | $1,844 | $556 | $6,432 |
| 2 | $2,400 | $1,987 | $413 | $4,446 |
| 3 | $2,400 | $2,140 | $260 | $2,306 |
| 4 | $2,400 | $2,306 | $94 | $0 |
| Total | $9,600 | $8,276 | $1,324 | $0 |

*Chart: Balance remaining on the budgeted car loan over 48 months. The loan balance left at the end of each year, from $8,276 down to $0.*

### Full schedule, all 48 payments

**Amortization schedule for the budgeted car loan at 7.47% over 48 months, every payment**

| Payment | Total payment | Regular principal | Extra | Interest | Balance |
| --- | --- | --- | --- | --- | --- |
| 1 | 200.00 | 148.48 | 0.00 | 51.52 | 8,127.99 |
| 2 | 200.00 | 149.40 | 0.00 | 50.60 | 7,978.58 |
| 3 | 200.00 | 150.33 | 0.00 | 49.67 | 7,828.25 |
| 4 | 200.00 | 151.27 | 0.00 | 48.73 | 7,676.98 |
| 5 | 200.00 | 152.21 | 0.00 | 47.79 | 7,524.77 |
| 6 | 200.00 | 153.16 | 0.00 | 46.84 | 7,371.61 |
| 7 | 200.00 | 154.11 | 0.00 | 45.89 | 7,217.50 |
| 8 | 200.00 | 155.07 | 0.00 | 44.93 | 7,062.43 |
| 9 | 200.00 | 156.04 | 0.00 | 43.96 | 6,906.39 |
| 10 | 200.00 | 157.01 | 0.00 | 42.99 | 6,749.39 |
| 11 | 200.00 | 157.99 | 0.00 | 42.01 | 6,591.40 |
| 12 | 200.00 | 158.97 | 0.00 | 41.03 | 6,432.43 |
| 13 | 200.00 | 159.96 | 0.00 | 40.04 | 6,272.47 |
| 14 | 200.00 | 160.95 | 0.00 | 39.05 | 6,111.52 |
| 15 | 200.00 | 161.96 | 0.00 | 38.04 | 5,949.56 |
| 16 | 200.00 | 162.96 | 0.00 | 37.04 | 5,786.60 |
| 17 | 200.00 | 163.98 | 0.00 | 36.02 | 5,622.62 |
| 18 | 200.00 | 165.00 | 0.00 | 35.00 | 5,457.62 |
| 19 | 200.00 | 166.03 | 0.00 | 33.97 | 5,291.60 |
| 20 | 200.00 | 167.06 | 0.00 | 32.94 | 5,124.54 |
| 21 | 200.00 | 168.10 | 0.00 | 31.90 | 4,956.44 |
| 22 | 200.00 | 169.15 | 0.00 | 30.85 | 4,787.29 |
| 23 | 200.00 | 170.20 | 0.00 | 29.80 | 4,617.09 |
| 24 | 200.00 | 171.26 | 0.00 | 28.74 | 4,445.83 |
| 25 | 200.00 | 172.32 | 0.00 | 27.68 | 4,273.51 |
| 26 | 200.00 | 173.40 | 0.00 | 26.60 | 4,100.11 |
| 27 | 200.00 | 174.48 | 0.00 | 25.52 | 3,925.63 |
| 28 | 200.00 | 175.56 | 0.00 | 24.44 | 3,750.07 |
| 29 | 200.00 | 176.66 | 0.00 | 23.34 | 3,573.41 |
| 30 | 200.00 | 177.76 | 0.00 | 22.24 | 3,395.66 |
| 31 | 200.00 | 178.86 | 0.00 | 21.14 | 3,216.80 |
| 32 | 200.00 | 179.98 | 0.00 | 20.02 | 3,036.82 |
| 33 | 200.00 | 181.10 | 0.00 | 18.90 | 2,855.73 |
| 34 | 200.00 | 182.22 | 0.00 | 17.78 | 2,673.50 |
| 35 | 200.00 | 183.36 | 0.00 | 16.64 | 2,490.15 |
| 36 | 200.00 | 184.50 | 0.00 | 15.50 | 2,305.65 |
| 37 | 200.00 | 185.65 | 0.00 | 14.35 | 2,120.00 |
| 38 | 200.00 | 186.80 | 0.00 | 13.20 | 1,933.20 |
| 39 | 200.00 | 187.97 | 0.00 | 12.03 | 1,745.23 |
| 40 | 200.00 | 189.14 | 0.00 | 10.86 | 1,556.09 |
| 41 | 200.00 | 190.31 | 0.00 | 9.69 | 1,365.78 |
| 42 | 200.00 | 191.50 | 0.00 | 8.50 | 1,174.28 |
| 43 | 200.00 | 192.69 | 0.00 | 7.31 | 981.59 |
| 44 | 200.00 | 193.89 | 0.00 | 6.11 | 787.70 |
| 45 | 200.00 | 195.10 | 0.00 | 4.90 | 592.61 |
| 46 | 200.00 | 196.31 | 0.00 | 3.69 | 396.30 |
| 47 | 200.00 | 197.53 | 0.00 | 2.47 | 198.76 |
| 48 | 200.00 | 198.76 | 0.00 | 1.24 | 0.00 |

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## Sources

- [New-car loan, 48 months average: 7.47%](https://fred.stlouisfed.org/series/TERMCBAUTO48NS). Federal Reserve G.19 Consumer Credit, terms of credit at commercial banks, series TERMCBAUTO48NS, as of May 1, 2026; retrieved September 27, 2026.
- [State vehicle sales tax and trade-in rules](https://theloanweek.com/sources/#vehicle-tax). State revenue departments and DMVs; state rate only, local taxes excluded.
- [20/4/10: gross income and total transportation costs](https://www.chase.com/personal/auto/education/buying/what-is-the-20-4-10-rule-for-car-buying). Chase explains 20% down, four years and 10% of gross monthly income including insurance, fuel and maintenance. A budgeting guideline, not an approval test. Reviewed September 27, 2026.

Page calculations or content last changed September 27, 2026. Observation and retrieval dates are listed per source above. [How we calculate](https://theloanweek.com/methodology/).