How this calculator works
Free cash is income minus bills minus the buffer you choose to keep. The new bill either fits inside that or it does not — and the yearly line shows what it really costs.
- Free cash = take-home pay − current bills − buffer.
- Room after the new bill = free cash − new bill.
- Yearly cost = new bill × 12.
Worked example
With these inputs: monthly take-home pay $4,000; current monthly bills $2,700; new bill amount per month $89; buffer you want to keep $500.
The result is yes — room left after it $711.00, with free cash before the bill $800.00 and bills after adding it $2,789.00 · 70% of income.
Why keep a buffer?
Bills aren't the only thing leaving your account: food, fuel and surprises need room too. The buffer is what you want left after all fixed bills. Many people start with a few hundred dollars and adjust it once they see real spending.
Know your current bills total
The answer is only as good as the "current monthly bills" number. If you're not sure, add your bills to the free web tracker on this site. It totals everything due this month, including weekly and yearly bills converted to a monthly figure.
Frequently asked questions
How do I know if I can afford another monthly payment?
Subtract your current bills and a spending buffer from your take-home pay. If the new payment fits in what's left, it's affordable on paper. Then check that it won't push your debt-to-income ratio past about 36% if it's a loan.
What if the answer is no?
Look for a cheaper plan, or remove an existing bill of similar size first. The Bill Increase and Subscription Cost calculators help decide what to cut.
Should I include annual subscriptions?
Yes. Divide the yearly price by 12 and enter it as a monthly bill so the comparison is fair.