How much car can I afford?
The 20/4/10 rule keeps a car from crowding out the rest of your budget. Total costs include the loan payment, insurance and fuel.
Do this every month in a spreadsheet
Debt Payoff Tracker Spreadsheet: List your debts once, log each payment, and see paid-so-far, remaining balance and percent paid for every debt and in total.
Excel and Google Sheets, formulas already set up. Instant download.
FAQ
Is 10% of income realistic?
It's conservative; it leaves room for saving and other goals. Many people spend more, but the rule shows a price that won't strain the budget.
What about a longer loan?
Longer loans lower the payment but cost more interest and often leave you owing more than the car is worth.
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