How much car can I afford?

Choose how much of your take-home pay can go to your car, and we show the car price that fits once insurance, fuel, upkeep, tax and fees are counted. The numbers shown are an example, so replace them with yours.

Your money

These are example numbers. Replace them with yours.

$

After tax and deductions. Add a partner's only if you share the car.

% of pay

Payment, insurance, fuel and upkeep together. 15% is a starting point, not a rule. Pick what fits your life.

$

Per month, for the kind of car you are considering.

$

Sales tax depends on where you register the car.

Loan, fees and trade-in
% a year
$
$
$

Car price that fits your budget

$18,763.52

Before tax and fees, with a payment of $350.00 a month.

How we got there

Set aside for all car costs
$750.00
Less insurance, fuel and upkeep
-$400.00
Left for the payment
$350.00
That payment can borrow
$20,017.78
Plus your down payment
$3,000.00
Total you can spend
$23,017.78
Of which sales tax
$2,634.26

A planning guide, not advice. It does not look at your other debts, savings or credit. A lender will set its own limits.

Keep going with Uobo

Uobo is your personal car agent. Text it what you need and it does the research and the checks, asks dealerships about availability, condition and price for you, and helps you decide. This is the text you would send:

Text Uobo

On a computer? Text (289) 819-4586 from your phone and paste what you copied. Standard message rates apply. Reply STOP any time to stop.

How it works

You pick a share of your monthly take-home pay for every cost of the car. We take off what insurance, fuel and upkeep usually cost you, and what is left is the most you should put toward a loan payment.

Then we work out how much that payment can borrow at your rate and term, add your down payment, and take off fees and your province's sales tax to find the car price that fits.

Counting running costs matters. A car is more than its payment, and a payment that looks fine on its own can leave too little once insurance and fuel are added.

Example: $5,000 take-home in Ontario

Setting aside 15% gives $750 a month for the car. With $400 of insurance, fuel and upkeep, $350 is left for the payment. At 7.9% over 72 months with $3,000 down, that reaches a car of about $18,764 before tax and fees.

What this does not cover

  • The percentage is your choice. There is no single right figure: it depends on your income, your other debts and how much the car matters to you.
  • It does not look at your other debts, savings or credit. A lender will apply its own limits, which may differ.
  • Running costs vary a lot with the car, your insurance record and how far you drive. Use the best estimate you have.
  • It covers every province and territory except Manitoba, Quebec and Saskatchewan.

Common questions

What percentage of my income should go to my car?

There is no official rule. Many people aim for a modest share of take-home pay for all car costs together, and leave room for savings and other debts. This tool lets you set the share and shows what it buys, so you can see the trade-off for yourself.

Should I count insurance and fuel?

Yes. They are part of what the car costs you every month. A cheaper car with high insurance can cost more than a dearer car that is cheap to run.

Does the down payment or a trade-in change what I can afford?

Yes. Both reduce what you need to borrow, so the car price that fits rises. A trade-in also lowers the sales tax in the provinces covered here.

How is this different from the monthly payment tool?

This one starts from your income and works out the payment for you. The monthly payment tool starts from a payment you already have in mind.

Where the numbers come from

Last checked against these official pages on 2026-10-07. Rates and rules change, so check the source before you rely on a figure.

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