Can I Afford It? Calculator
Thinking about a car, a vacation, a new phone or a big repair? Enter the price, how you will pay, and a few numbers about your money. You get a clear answer, based on your real take-home pay after 2026 federal and state taxes, not just your salary.
Minimum payments on cards, student loans and other loans. Leave rent out (it goes in spending).
Examples
Single filers unless noted, using the calculator above.
| Purchase | Situation | Answer | Why |
|---|---|---|---|
| $30,000 car loan | $65,000 salary in Texas, $18,000 saved | 🟢 Yes | $541/month payment, debt-to-income 16%, $693 left monthly |
| $30,000 car loan | $50,000 salary in California, $5,000 saved | 🔴 Not yet | $541/month payment; only $289 left each month |
| $2,500 vacation, cash | $55,000 salary in Ohio, $11,000 saved | 🟡 Tight | 2.8 months of spending left in savings (under 3) |
| $1,200 phone, cash | $40,000 salary in Florida, $3,000 saved | 🟡 Tight | 0.7 months of spending left in savings (under 3) |
| $8,000 home repair, cash | $90,000 salary in Illinois, $25,000 saved | 🟢 Yes | 3.5 months of spending left in savings |
The same $30,000 car is fine on one budget and a stretch on another. Price alone never answers the question.
The three checks this calculator uses
- Emergency fund stays at 3+ months. After the purchase (or the down payment), your savings should still cover at least three months of spending and debt payments. Many planners suggest three to six months.
- Debt-to-income stays at 36% or less. All monthly debt payments, including the new one, divided by gross monthly income. 36% is a common comfort line used by lenders; above it, new credit gets harder and pricier. Rent is not counted here.
- You keep a cushion each month. After all bills and the new payment, at least 10% of your take-home pay should be left for saving and surprises.
Pass all three and the answer is yes. Pass the money test but miss a cushion and it is tight. Not enough savings for the purchase or down payment, or a payment larger than what you have left, and the answer is not right now.
The price in hours of work
The calculator also turns the price into hours of work at your after-tax pay (take-home divided by 2,080 hours a year). A $1,200 phone can cost 60 or more hours of work for someone earning $40,000. Seeing it that way helps with "wants".
Buying a car? The 20/4/10 rule
A popular car rule says put at least 20% down, borrow for no more than 4 years (48 months), and keep the car payment plus insurance under 10% of gross income. It is stricter than this calculator, so if you pass 20/4/10 you are in good shape. Try a 48-month loan above to see the difference in total interest.
How this calculator works
It finds your monthly take-home pay with the same 2026 federal, Social Security, Medicare and state tax math used in our 51 state paycheck calculators. It subtracts your spending and debt payments to get what is left each month. For a loan it works out the monthly payment from the amount borrowed, rate and length, then checks the three rules above. For cash it checks what your savings look like after you pay. Local and city taxes are not included.
FAQ
How do I know if I can afford something?
Check three things: you still have at least three months of spending saved after you buy it, your total debt payments stay at or under about 36% of your gross income, and you still have money left over each month.
How much car can I afford?
A common guide is a payment that keeps total debt under 36% of gross income, with car costs under about 10% to 15% of income. Enter the car price and loan terms above to see your payment and debt-to-income.
Should I pay cash or finance?
Paying cash avoids interest, but only if you still keep an emergency fund. If cash would empty your savings, a low-rate loan can be safer. Switch between the two options above to compare.
What is a good debt-to-income ratio?
Under 36% is generally seen as healthy, and many lenders prefer it. Some mortgage programs allow higher, but money gets tight above that.
Does this include rent or my mortgage?
Rent and other living costs go in monthly spending. Debt-to-income here counts only debt payments, like cards, student loans and car loans.
Rules and rates last checked: October 2026. This is an estimate for general information only, not financial, tax or legal advice. Check IRS.gov or a tax professional before you file.