"Can I Afford It?" Calculator
You see something you want to buy. The question isn't just "do I have the money?" — it's "can I afford it without wrecking my budget, debt payments, or savings goals?" This calculator gives you an honest answer.
💵 Your Finances
🛒 The Purchase
How to Use This Calculator
- Enter your actual numbers — real income, real expenses. Don't fudge the numbers to justify the purchase.
- Enter the price — include tax and shipping.
- Pick your payment method — cash? Credit card? Financing?
- Read the verdict honestly — if it says "not affordable," it means it.
The Rules We Use
The calculator uses common-sense financial rules:
- 50% rule: Essentials should be under 50% of after-tax income. If yours are higher, any discretionary purchase puts you in the red.
- 20% rule: At least 20% of income should go to savings. A purchase that forces you below this threshold is risky.
- 1-month rule: If the purchase costs more than 1 month of disposable income, it's a major decision — not an impulse buy.
- Debt warning: Financing at 20%+ APR doubles the effective cost over 12 months. Credit card debt for discretionary purchases is the #1 wealth killer.
📒 Build a Budget That Works
This calculator checks one purchase. A real budget prevents you from needing it in the first place. Build one in 60 minutes.
FAQ
Should I buy something if the calculator says "stretch"?
Only if you've already met your savings goal for the month AND have an emergency fund. A "stretch" means it's possible but tight — you'll have less room for unexpected expenses that month.
Is it okay to use credit cards for purchases?
Only if you pay the statement balance in full every month. Credit cards earn rewards and build credit. But if you carry a balance at 20%+ APR, that $500 purchase becomes $550+ within a year.
What counts as "essentials"?
Rent/mortgage, utilities, groceries, insurance, minimum debt payments, transportation to work, childcare. NOT dining out, subscriptions, entertainment, or shopping — those are discretionary.