What Car Can I Afford With a $600K Salary?
Based on the 20/4/10 rule, here's what you can comfortably afford with a $600K annual income.
You can afford cars that cost
Safe Range:
$192,850
You can safely afford a car at this price
Stretch Range:
$291,372
Buying a car at this price is a bit of a stretch
Lender Max:
$705,166
Some lenders may qualify you for cars at this price
Monthly Pay: $50,000
Safe Car Payment: $4,775
Stretch Increment: $2,500
Max Increment: $10,500
Monthly Remaining: $17,000
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How We Calculate
Safe Range
The most financially responsible car price you can afford
Based on spending no more than 10% of your monthly income on car payments, including insurance and maintenance costs
Stretch Range
A more expensive option, but may strain your budget
Based on spending up to 15% of your monthly income on car payments, including insurance and maintenance costs
Lender Max
What lenders would likely approve, but financially risky
Based on debt-to-income ratio limits (36% including all debts), though this pushes your budget to the limit
Adjust Your Parameters
The results above use standard assumptions. Use the calculator below to customize parameters like down payment, interest rate, and monthly expenses.
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Understanding Your Budget
With a $600K annual salary, your recommended car budget ranges from $192,850 to $291,372 depending on your financial priorities.
Budget Breakdown:
- •Safe Range ($192,850): Follows the , ensuring you can comfortably afford your car payment while maintaining financial flexibility
- •Stretch Range ($291,372): A moderate approach that balances affordability with your automotive goals, allowing slightly higher payments
- •Lender Max ($705,166): What banks typically approve based on debt-to-income ratios, but may strain your monthly budget
These calculations assume standard financing terms (6.5% interest, 48-month loan), $5,000 down payment, and typical operating costs. Adjust the calculator above to see how your specific situation affects your budget.