Car Affordability Calculator: How Much Car Can You Afford?
Use our free Car Affordability Calculator to estimate the right car price for your budget, monthly payment, loan amount & interest — instantly.
Adjust the values below to estimate the vehicle price and monthly payment that fit your budget.
Your finances
Vehicle and loan details
This calculator provides estimates for educational purposes only. Actual loan approval, interest rates, taxes, fees and insurance costs may vary.
This calculator uses the standard loan amortization (annuity) formula to convert your budget into a monthly payment, loan amount, and total interest based on your APR and loan term. It then factors in sales tax, registration fees, insurance, down payment, and trade-in equity to estimate the maximum vehicle price that fits within your chosen percentage of monthly disposable income.
FAQ:
It uses the standard loan amortization formula — Payment = Loan Amount × r / (1 − (1 + r)⁻ⁿ), where r is the monthly interest rate and n is the loan term in months — combined with a debt-to-income style rule that caps your car payment at a chosen percentage of disposable income (income minus expenses).
A common guideline is 10–15% of your monthly disposable income (after regular expenses), including insurance. The calculator defaults to 15% but lets you adjust this based on your own comfort level and other financial obligations.
Yes. It factors in sales tax, registration fees, and monthly insurance costs alongside your down payment and trade-in equity, so the estimated affordable price reflects the full out-the-door cost, not just the sticker price.
The numbers are estimates for planning purposes only. Actual loan approval, interest rate, tax rate, and fees depend on your lender, credit profile, state, and dealership, so real offers may differ from the calculator’s output.
