Should I count insurance/fuel?

Yes — total cost of ownership matters. A $35k pickup costs more in insurance and gas than a $35k Civic.

Is 84-month loan ever OK?

Almost never. Cars depreciate 50% in 3-4 years. 84-month puts you underwater for ~5 years.

2-3 year old cars have already taken depreciation hit. Often 30-50% cheaper than new for same model. Sweet spot.

Pay cash if possible?

Mathematically not always — at sub-5% APR you might invest the cash for higher returns. But emotionally, debt-free feels great.

Car Affordability Calculator

Max car price = (monthly budget × loan factor) using 20/4/10 rule and DTI cap.

Result

Max car price

$15,340

Loan payment ≤ $250/mo within budget.

Take-home$6,000/mo
Auto budget %10%
Total auto budget$600/mo
Insurance$150/mo
Fuel + maint$200/mo
Max loan payment$250/mo
Max financed amount$10,340
Down payment$5,000
Max car price$15,340

Step-by-step

Total auto budget = 10% × $6,000 = $600.
Max loan payment = budget − insurance − fuel/maint = $250.
Max financed = PMT × (1 − (1+r)^(−n)) / r = $10,340.
Max price = financed + down = $15,340.

How to use this calculator

Enter monthly take-home (after taxes).
Set auto budget %.
Enter expected APR + loan term.
Read max sticker price.

About this calculator

The 20/4/10 rule: 20% down, 4-year max loan, 10% of take-home for all auto costs (loan + insurance + fuel + maintenance). This calculator backs into a max sticker price from your monthly budget. The biggest mistake first-time car buyers make: focusing only on monthly payment and stretching loans to 7-8 years to "afford" a more expensive car — costs more long-term and traps you underwater for years.