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Car Affordability Calculator

Use the 20/4/10 rule to determine if you can afford your next vehicle purchase.

Financial Profile

Income and Loan details

Annual Gross Income ($)

Target Car Price ($)

Down Payment ($)

Interest Rate (%)

Term (Years)

Estimated Depreciation

Projected resale value

Year 1

$25,500

-15%

Year 2

$21,675

-28%

Year 3

$18,424

-39%

Year 5

$13,311

-56%

Affordability Verdict

20/4/10 Rule Check

Monthly Payment

$553

Monthly payment exceeds 10% of gross income.

Rule Explanation

20% Minimum down payment to avoid negative equity.
4 Years Maximum loan term to keep pace with depreciation.
10% Maximum of gross monthly income for ALL transport costs.