Can I Afford It?

Check if a purchase fits your budget. Enter the price and your monthly income to get a quick affordability check.

Your Financial Details

Monthly Income

Monthly Essential Expenses

Monthly Debt Payments

Current Savings

Purchase Price

How Affordability Is Calculated

% of Savings = Purchase Price ÷ Current Savings × 100

Months to Recover = Purchase Price ÷ Disposable Income

Disposable income = monthly income minus essential expenses and debt payments. The result tells you what portion of your savings the purchase would consume, and how many months it would take to replenish that amount from your leftover income.

Example

A $1,500 laptop with $10,000 in savings, $5,000/month income, $3,000 expenses, $500 debt:

% of savings = $1,500 ÷ $10,000 = 15% → Tight

Disposable income = $5,000 − $3,000 − $500 = $1,500/month

Months to recover = $1,500 ÷ $1,500 = 1 month

How to Interpret Your Result

The calculator gives a status based on what percentage of your savings the purchase would use:

Comfortable (≤10%): Uses a small portion of savings. You should be fine.

Possible but Tight (11-30%): Noticeably reduces savings. Consider waiting or saving more first.

High Impact (>30%): Would significantly drain savings. Think carefully before proceeding.

"Months to Recover" shows how long it takes to rebuild the spent savings from your leftover income. A short recovery time means the purchase is a temporary dip; a long one means a lasting setback to your financial buffer.

Assumptions & Limitations

Savings-based check: This tool compares the price to your savings, not to financing. It does not calculate loan payments or interest. If you'd finance the purchase, the real cost is higher than the sticker price.
No emergency fund protection: The calculator doesn't reserve a minimum emergency buffer. Most advisors recommend keeping 3-6 months of expenses untouched — if this purchase would dip into that, treat it as "High Impact" even if the percentage looks low.
General guidance only: This is not financial advice. For major decisions, consult a qualified financial advisor.

Frequently Asked Questions

How do I know if I can afford something?

Compare the cost to your available savings or monthly budget. A common rule is the 50/30/20 rule: 50% for needs, 30% for wants, 20% for savings.

What percentage of income should go to a big purchase?

Most financial advisors suggest keeping major purchases under 10-15% of your annual income, or paying for them from savings rather than going into debt.

Should I save or use a loan for a big purchase?

If you can save and pay cash, that's usually best. Loans add interest costs. But for essential purchases (home, education), low-interest loans can be reasonable.