Budget Calculator

How the calculator works

Car costs arrive on different schedules: a premium every six or twelve months, fuel every week, a loan payment every month and a deductible only when something goes wrong. The calculator turns each of them into a monthly figure so you can see them side by side.

• Monthly insurance cost is your premium divided by the number of months it covers. A $900 six-month premium works out to $150 a month.
• Deductible savings per month is your deductible, minus anything you have already saved, divided by the number of months you choose.
• Total monthly car cost adds insurance, deductible savings, fuel, maintenance, the loan or lease payment and other costs.
• Share of take-home pay divides that total by the pay that actually reaches your account each month.

The target is yours to choose. Housing costs, debt and how far you drive vary so much from one household to the next that no single percentage fits everyone, so the calculator simply compares your total with the number you pick.

Why plan for the deductible

Your premium is only part of what insurance costs. When you file a collision or comprehensive claim, you pay the deductible first and the insurer pays the rest of the covered repair, up to the car's actual cash value. If a $1,000 bill on short notice would be hard to cover, a fender bender can turn into a budget emergency, or a repair you need may have to wait.

Setting aside a small amount each month solves that. Once the fund reaches your deductible, you can stop adding to it and your monthly total drops, which is the last line in the result. A few points to keep in mind:

• A deductible usually applies to each claim, so two claims in a year can mean paying it twice.
• If your collision and comprehensive deductibles differ, plan for the larger one.
• If you use the fund for a claim, rebuild it the same way before choosing a higher deductible.

Paying monthly or in full

Many insurers let you pay a six-month or yearly premium in one payment or in installments. Some offer a discount for paying in full, and some add a small fee to each installment. The calculator uses the average monthly cost either way, which keeps the comparison fair. If you pay in installments, check your billing schedule, since the first payment can be larger than the rest.

If the numbers do not fit

Start with the biggest line in your budget. When your total runs over your target, the verdict names it for you, and it is not always insurance. If the premium is the problem, these steps often help:

• Compare quotes for the same coverage before each renewal. Prices for the same driver and car can differ between insurers, and our Compare Quotes tool keeps the comparison fair.
• Ask about every discount you might qualify for. The Available Discounts guide lists the common ones.
• Price a higher deductible, but only once your fund could cover it. The Deductible Calculator shows how long the savings take to pay off.
• On an older car, check whether collision and comprehensive still pay their way with the Coverage Calculator.

Avoid cutting liability limits to save money. They protect your savings and income if you cause a serious accident, and the Coverage Levels Guide explains why the state minimum may not be enough. For more ideas, read How to Lower Premiums and How to Save Money on Car Insurance. When you are ready to shop, the Rate Checklist lists what to have on hand.

This calculator gives general estimates from the numbers you enter. It is not a quote and not financial advice. Actual premiums, fees and claim costs depend on your insurer, your state and your circumstances.