How do I use the 20/4/10 rule calculator?

To use the 20/4/10 Rule Calculator: Input your monthly gross income. Determine the desired loan term in months (e.g., 48 months for a 4-year loan). Input the annual interest rate for the car loan. The calculator will provide the maximum car purchase price that adheres to the 20/4/10 Rule.

What is the 20/4/10 car loan rule?

The 20/4/10 rule is a guideline used by lenders to determine how much car you can afford based on your income and expenses. The rule states that you should: Put down at least 20% of the car’s purchase price as a down payment. Finance the car for no more than 4 years.

How do I calculate a 20/4/10 loan amount?

Loan Amount: The loan amount represents the remaining balance after the down payment. It is the total price of the vehicle minus the down payment. To use the 20/4/10 Rule Calculator: Input the “Total Price” of the vehicle into the form. Click the “Calculate” button. The calculator then performs the necessary calculations based on the rule.