Car affordability calculator
See a responsible ceiling for what to spend on a car, based on your income rather than what a dealer will approve you for.
What this means for you
See how your suggested price ceiling shifts if you use a stricter or looser income guideline.
Compare guideline strictness
The percentage you choose is a guideline, not a rule — see how the price ceiling shifts between a stricter and looser limit.
| Scenario | % of income | Max car price |
|---|---|---|
| Stricter | 10% | $0 |
| Current | 15% | $0 |
| Looser | 20% | $0 |
10% is a common strict guideline for the loan payment alone; 20% is a looser ceiling for total car costs — where you land depends on what else is in your budget.
Assumptions & sources
Common personal-finance guidelines capping total car costs at 15-20% of net income, or loan payments alone at a stricter 10%.
1 July 2026
17 July 2026
Max spend = net income × chosen %. Running costs are subtracted first, leaving the balance for a loan payment, which is then converted to a maximum loan amount and added to your deposit.
Estimated running costs and the loan payment implied by your remaining budget.
What a lender would actually approve you for — this is a responsible spending guideline, not a loan pre-approval.
Related reading
How much does it really cost to own a car in NZ?
The sticker price is just the start — here's everything else a car actually costs to own in NZ, and how it adds up per week.
Read article →
EV vs petrol: which is cheaper to own in NZ in 2026?
Electric cars cost more upfront but less to run. Here's how the total cost of ownership actually compares in NZ.
Read article →Why a percentage-of-income rule beats "what the bank approves"
Lenders assess what you can technically service, not what leaves you comfortable — approval limits are usually well above what's actually responsible once you account for everything else in your budget. A simple guideline, like capping total car costs at 15-20% of net income, keeps a buffer for housing, food, savings and the unexpected, rather than stretching to the maximum a finance company will offer.
Total car cost means more than the loan payment — fuel, insurance, rego, WOF and maintenance add up fast, often $150-300 a month even for a modest car. Budgeting for the whole picture, not just the repayment, avoids the common trap of affording the loan but not the car.
Frequently asked questions
A common guideline is 15-20% of net income for total car costs (loan plus running costs). Some frameworks use a stricter 10% for the loan payment alone, especially if you're also carrying a mortgage or rent.
A popular rule of thumb: 20% deposit, finance for no more than 4 years, and keep total transport costs under 10% of gross income. It's stricter than some guidelines — treat it as a ceiling, not a target.
