Stop guessing whether you can afford something. Enter your monthly take-home, fixed costs and savings target to see exactly how much genuine discretionary money you have — and whether this purchase fits.
Having money in your account is not the same as being able to afford something. Genuine affordability means the purchase fits within your discretionary income — after fixed costs and your savings target are met. Spending from savings or reducing savings to buy something is borrowing from your future self. This calculator shows your true discretionary position before every significant purchase decision.
A purchase is genuinely affordable if: (1) You can pay for it from this month's discretionary income without reducing savings; (2) For recurring costs, it fits within your budget without crowding out savings; (3) You have an emergency fund that would not need to be depleted. If all three apply: proceed confidently.
Common affordability illusions: "I can put it on a 0% credit card" (defers cost, does not eliminate it); "I'll cut back elsewhere next month" (rarely happens); "I have savings" (savings are for emergencies and goals, not discretionary spending); "The monthly payment is affordable" (ignores total cost). These mental shortcuts lead to chronic underfunding of savings goals.
You can genuinely afford something if: for one-off purchases — you can buy it from this month's discretionary income (take-home minus fixed costs minus savings target) without reducing savings; for recurring costs — it fits within your budget while maintaining your savings rate. If you cannot afford it from discretionary income, you cannot truly afford it — you are borrowing from future spending or savings goals.
After essential fixed costs (rent/mortgage, utilities, food, transport, insurance, debt minimums) and savings contributions (target 20% of income), the remaining amount is genuinely discretionary. UK average: essential fixed costs consume 50-65% of take-home, savings 5-15%, leaving 20-35% truly discretionary. If fixed costs exceed 70% of take-home, you have a structural income or spending problem requiring a plan, not just budgeting.