First Cars

Affordability Calculator

Find out if you can comfortably afford a new vehicle based on your income and expenses.

💰Monthly Income

$1,000$20,000

🏠Fixed Monthly Expenses

$0$5,000
$0$500
$0$400
$0$500
$0$2,000

🛒Variable Monthly Expenses

$200$3,000

Include all variable spending like groceries, dining out, entertainment, and personal care.

🚗Vehicle Payment

Loading saved deals...

$0$2,000

Enter the expected monthly lease or finance payment.

🛡️Insurance Estimate

Insurance rates vary significantly by province.

16 years80 years

Insurance rates are typically higher for younger drivers.

$50$800

Estimate based on Ontario averages. Adjust based on your actual quote.

✓You can comfortably afford this vehicle

You'll have $1,620 remaining each month for savings and unexpected expenses.

Monthly Income+$5,000
Fixed Expenses-$1,900
Variable Expenses-$800
Vehicle Payment-$500
Insurance-$180
Remaining$1,620

Recommendations

  • • Consider saving the extra for an emergency fund
  • • You could potentially afford a higher-end vehicle if desired

The 20/4/10 Rule

Financial experts often recommend the 20/4/10 rule for car buying: Put at least 20% down, finance for no more than 4 years, and keep total vehicle expenses (payment + insurance + gas + maintenance) under 10% of your gross monthly income. This helps ensure your car doesn't become a financial burden.