Car Affordability Calculator
A car costs far more than its sticker price. This calculator starts from your income and expenses, subtracts realistic running costs, and works backwards to the car price and monthly payment you can genuinely sustain.
What should I do next?
Based on the numbers you entered. Everything is worked out in your browser — nothing you type is sent anywhere.
This monthly cost looks comfortable
Payment plus running costs is about 450,00 € a month, roughly 10% of your income and 24% of what is left after essentials. Common guidance keeps total car costs near 10% of income.
A safer vehicle budget is around 13.512,00 €
That is a loan of 9.512,00 € at 7.5% over 48 months, plus your 4.000,00 € of deposit and trade-in. Interest over the term would be about 1.528,00 €.
A larger deposit lowers the financed amount
Putting down an extra 2.250,00 € would cut the monthly payment to about 176,00 € for the same car, or let you keep the payment and buy the same amount of car with less borrowed.
Shorter terms cost less overall
A longer loan lowers the monthly payment but usually increases the total interest paid, so a lower payment is not automatically the cheaper choice. Compare the terms below before deciding.
Total monthly car cost vs the 10% guideline
- Your total monthly car cost
- 450,00 €
- 10% of monthly income
- 450,00 €
- Below the guideline by
- 0,00 €
Payment plus running costs, compared with a widely used ceiling.
Try a safer scenario
These are hypothetical comparisons. Your own numbers above do not change.
Not sure the monthly cost fits the rest of your spending? Try the Monthly Budget Calculator →
These are educational estimates based on common rules of thumb, not individual financial advice.
Estimates only. Real finance offers depend on your credit profile, dealer fees, taxes and residual values. This is not financial or lending advice.
How this calculation works
- Monthly car budget = the lower of 10% of your income, or 60% of your leftover income after expenses.
- Affordable loan payment = car budget − running costs.
- Loan amount uses the standard amortisation formula: P = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate and n the number of months.
- Maximum car price = loan amount + deposit + trade-in value.
Total cost of ownership adds every payment plus running costs over the full term, which is the number worth comparing between two cars rather than the monthly figure alone.
Worked example
Priya earns $4,500 a month and spends $2,600 on everything else, leaving $1,900. Ten percent of her income is $450, which is well below 60% of her leftover, so $450 becomes her total monthly car budget.
Insurance, fuel and servicing come to $220, leaving $230 for finance. Over 48 months at 7.5% APR that supports a loan of roughly $9,500. With her $4,000 deposit, Priya should be shopping around the $13,500 mark — not the $20,000 car the dealer's monthly-payment table suggests.