Car Affordability Calculator (Income)
Work out a sensible car budget based on your gross annual income. Set the maximum percentage of income you are comfortable spending on car finance, and the calculator will show the vehicle price you can afford.
Frequently asked questions
What percentage of income should I spend on a car?
The widely used 15% rule suggests spending no more than 15% of your gross annual income on car finance payments. Some advisers use 10% of take-home pay. Either way, keep total motoring costs (finance, insurance, fuel, maintenance) well below 25% of net income.
Should I base it on gross or net income?
This calculator uses gross income for simplicity, which is the figure most people know. For a more conservative estimate, mentally adjust the percentage downward — 15% of gross is roughly equivalent to 20% of net income for a basic-rate taxpayer.
Does a longer term mean I can afford a more expensive car?
Yes, spreading payments over more months increases the maximum loan amount for the same monthly budget. However, a longer term means paying significantly more interest overall. A 60-month loan costs substantially more in interest than a 36-month loan at the same APR.
What if I earn variable income or commission?
Use your base salary only — do not include variable income like commission or bonuses. Lenders will stress-test your affordability on guaranteed income, and basing your budget on the same figure protects you if commission drops.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.