Car Affordability Calculator
See how much car you can afford based on your monthly budget.
Enter your numbers and select Calculate to see results.
About This Calculator
This calculator estimates the maximum vehicle price you can afford, working backward from a monthly payment budget you set. A common guideline is to keep total vehicle costs (payment, insurance, fuel, maintenance) under 15–20% of take-home pay — enter your desired monthly payment budget to see the affordable loan and vehicle price.
How This Is Calculated
Max Loan = Monthly Budget × [ (1+i)^n − 1 ] / [ i(1+i)^n ]
- Max Loan
- — The largest loan your monthly budget supports
- i
- — Monthly interest rate (APR ÷ 12)
- n
- — Loan term in months
A $500/month budget at 7.5% for 60 months supports about a $24,970 loan, plus your down payment.
Assumptions
- Does not include sales tax, registration, or insurance — factor these in separately for a realistic budget.
- A common rule of thumb caps total vehicle costs (not just the loan payment) at 15-20% of take-home pay.
Frequently Asked Questions
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Last updated January 15, 2026. Results are estimates for informational purposes only — read our disclaimer.