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Can you afford that car payment?

Enter the price, the loan and what the car costs to run. See the monthly cost of owning it, how it scores on the 20/4/10 rule, and how 48, 60 and 72 months compare.

→ Many lenders look for a DTI below about 43% with the new car payment included. Limits vary by lender and loan type.
→ The 20/4/10 rule: 20% down, 4-year term, payments under 10% of gross income.
→ Average new car payment in the U.S. is about $765/month; used is about $540/month (Experian, Q2 2026).
43%
Common DTI cap (varies by lender)
$765
Avg new car payment in U.S.
60–72mo
Typical new-car loan term
5sec
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The 20/4/10 Rule

Financial experts recommend putting at least 20% down on a car, financing for no more than 4 years, and keeping your total car expenses (payment + insurance) under 10% of your gross monthly income.

Our calculator flags a DTI above 35% as tight and above 43% as high risk. These are common guidelines, not universal rules: each lender sets its own limits based on loan type, credit score, and down payment.

What DTI means for your car loan

Debt-to-Income (DTI) is the percentage of your monthly income that goes toward debt payments. Add up your rent, credit cards, student loans, and the new car payment — divide by your income.

Under 35% is comfortable. 35–43% is tight but possible. Above 43%, many lenders may decline the application or charge a higher rate, though limits vary by lender.

Common questions

How much car can I afford on a $50,000 salary?
On a $50,000 annual salary (~$4,167/month), the 10% rule suggests keeping your total car costs under $417/month. That typically supports a loan of $18,000–$22,000 over 60 months at current rates (about 7% APR), before insurance.
Is a $600 car payment too much?
It depends entirely on your income and other debts. On a $5,000/month income with $500 in other debts, a $600 car payment puts your DTI at 22% — very comfortable. On the same income with $1,500 in other debts, your DTI hits 42% — dangerously close to the limit. Use the calculator above to check your specific situation.
What credit score do I need for a car loan?
Many lenders approve auto loans with scores above 600, but the best rates (under 6% APR) typically require 700+. With a score below 600, you may still qualify but expect rates of 15–20% APR, which significantly increases your total cost.

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