Calculate how much you can spend on a new car based on your income
How to use this online calculator: Enter the amount you earn per year in USD and click “Calculate” to use the calculator.
This online buy car calculator will help you calculate how much you can spend when buying a car based on your income. You should not spend too much on a new car because this may affect negatively your finance and your quality of life. With this tool you can calculate if you can afford a new car and how expensive it can be.
The car price is calculated based on the 1/10th rule, which states that you should not spend more than 1/10th of your gross annual income on a car.
How this online calculator works:
Car Purchase Formula:
Recommended Maximum Purchase Price of Car = Gross Annual Income / 10