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Car Affordability Calculator

Your car costs more than the monthly payment. See the real number — including depreciation, insurance, fuel, and maintenance.

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Average new car rate: ~6.9% (2026)
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Oil, tires, repairs — avg $1,200/yr
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New cars: ~15%/yr first 5 years
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Garage, permits, street cleaning tickets

How to Use This Calculator

True Monthly Cost tab

The default tab. Enter the car price, insurance, and fuel cost. The calculator adds loan payments, depreciation, and maintenance to show the real monthly cost of owning. Expand "More options" to adjust down payment, loan rate, term, maintenance, depreciation rate, and parking.

Car vs Alternatives tab

Enter the same car details, plus your public transit pass cost and rideshare budget. The calculator compares total car ownership cost against transit + rideshare, showing monthly and 5-year savings. It also shows what those savings would grow to if invested.

Share your result

Every input is encoded in the URL. Click Share, send the link to your partner — they'll see your exact numbers. Perfect for the "do we really need a second car?" conversation.

The Formula

True monthly cost includes every expense category, not just the loan payment:

True Monthly Cost = Loan Payment + Insurance + Fuel + (Maintenance ÷ 12) + (Price × Depreciation% ÷ 12) + Parking

Most people underestimate car costs because they only think about the loan payment. But depreciation alone can exceed the payment — a $35,000 new car losing 15%/year depreciates $437/month in invisible value loss.

The Car vs Alternatives tab adds an investment growth projection: savings from going car-free, compounded at 8%/year over 5 years.

Example

Alex — Chicago, IL

Alex is considering buying a $35,000 car. He currently uses the CTA ($105/month) and Uber for weekend trips ($250/month).

True Monthly Cost tab

True monthly cost$1,508
Loan payment$691
Insurance$180
Fuel$200
Depreciation$437

The loan payment is $691, but the true cost is $1,508/month — more than double. Depreciation is the hidden killer: $437/month in value loss that never shows up on a bill.

Car vs Alternatives tab

Car monthly cost$1,508
Alternatives cost$355
Monthly savings (no car)$1,153
5yr savings invested$85,200

Alex saves $1,153/month without a car. Over 5 years, invested at 8%, that's $85,200. He decided to skip the car and budget $400/month for rideshare instead — still saving $1,100/month.

FAQ

The true monthly cost includes your loan payment, insurance, fuel, maintenance, and depreciation. Most people only think about the loan payment, but depreciation alone can add $400+/month for a new car. The calculator shows every cost category so nothing is hidden.
New cars depreciate about 15% per year in the first 5 years. For a $35,000 car, that's $437/month in lost value. Used cars (3–5 years old) depreciate slower at about 8–10% per year. Buying a 2–3 year old certified pre-owned car is one of the biggest cost-saving moves you can make.
In many US metro areas, yes. Public transit ($100–130/mo) plus rideshare for occasional trips ($200–400/mo) often costs less than car ownership ($800–1,200/mo total). The breakeven depends on your city, commute, and lifestyle. Use the Car vs Alternatives tab to compare with your specific numbers.
Financially, used almost always wins. A 3-year-old car has already lost 40–50% of its value but still has most of its useful life. Try running the calculator with a $35,000 new car at 15% depreciation, then a $20,000 used car at 10% depreciation. The monthly cost difference is dramatic.
In cities like NYC, Chicago, or SF, monthly parking can be $200–$500. Even in suburban areas, airport parking, event parking, and occasional meters add up to $50–100/month. It's a real cost of car ownership that most calculators ignore.

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