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Can you afford that car payment?

Enter your income, existing debts, and the loan details. Get an instant verdict — no guesswork, no jargon.

→ Most lenders require your DTI to stay under 43% with the new car payment included.
→ 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 $735/month. Average used: $523/month.
43%
Max DTI most lenders allow
$735
Avg new car payment in U.S.
60mo
Most common auto 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 uses the stricter DTI threshold (43%) that lenders actually apply, so you get a real picture of your borrowing power.

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. Over 43% and most lenders will decline your application — or offer a much higher rate.

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, assuming you already have some existing debt.
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?
Most 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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