Car Affordability Calculator

Our Car Affordability Calculator helps you determine how much car you can afford based on your budget. Here's how to use it:

1. Monthly Budget: Enter the amount you can comfortably afford to pay each month for your car loan.
2. Down Payment: Enter the amount you plan to pay upfront.
3. Loan Term: Select the length of your loan in months.
4. Interest Rate: Enter the annual interest rate you expect to receive.

The calculator will determine the maximum car price you can afford based on these inputs.

Understanding Car Affordability

When determining how much car you can afford in Australia, it's important to consider not just the purchase price, but the total cost of ownership. This includes loan repayments, insurance, registration, fuel, maintenance, and depreciation.

The 20/4/10 Rule for Car Buying

Financial experts often recommend the 20/4/10 rule for car purchases:

• 20% - Make a down payment of at least 20% of the car's value
• 4 - Finance the car with a loan of no more than 4 years
• 10% - Keep total monthly vehicle expenses under 10% of your gross monthly income

Additional Costs to Consider

When budgeting for a car in Australia, remember to account for these additional costs:

• Stamp Duty: Varies by state and vehicle value (typically 2-5%)
• Registration: Annual fees that vary by state and vehicle type
• CTP Insurance: Compulsory third-party insurance
• Comprehensive Insurance: Especially important for newer vehicles
• Fuel Costs: Consider the vehicle's fuel efficiency
• Maintenance: Regular servicing and unexpected repairs

New vs. Used Cars

While new cars offer warranties and the latest features, they depreciate quickly. Used cars can provide better value but may have higher maintenance costs. Our affordability calculator can help you determine your budget for either option.

Use our car affordability calculator to find a vehicle that fits your budget while considering all these factors.