Car Affordability Calculator
The car price you can afford from a monthly payment budget.
Formula
About this calculator
Most car shoppers think about price first, but lenders and budgets work the other way around — from the monthly payment you can comfortably afford. This calculator flips the usual auto-loan math: instead of entering a car price to find a payment, you enter the payment you want and it solves for the most expensive vehicle that fits.
It works by reversing the standard amortizing-loan formula. Your target monthly payment, the interest rate and the loan term determine the maximum loan amount that payment can support. Adding your down payment and trade-in value gives your total buying power, and because US sales tax is normally financed on top of the vehicle price, the tool divides that total by one plus your tax rate to arrive at the actual sticker price you can afford.
The results show the affordable vehicle price, the loan amount, the sales tax and the total interest you will pay over the term. Seeing these together makes the trade-offs obvious: a longer term lowers the payment but raises total interest and often leaves you owing more than the car is worth, while a larger down payment stretches your budget to a nicer vehicle for the same monthly cost.
A widely used guideline is to keep total monthly car costs — loan payment plus insurance, fuel and maintenance — under about 15 to 20 percent of your take-home pay. This calculator sizes the loan payment; leave room in your budget for those running costs so the car you can technically finance is also one you can comfortably live with.
Frequently asked questions
How much car can I afford on my salary?
A common rule is keeping total monthly car costs under 15–20% of take-home pay. Enter a comfortable monthly payment here and the calculator shows the matching car price.
Does a longer loan let me afford more car?
It lowers the monthly payment, so it raises the price you can finance — but you pay much more total interest and risk being underwater. Weigh the price against the total cost shown.
Is sales tax included?
Yes. Because sales tax is usually financed on top of the price, the tool works it into the calculation so the affordable price already accounts for it.
Should I count insurance and fuel?
This tool sizes the loan payment only. Insurance, fuel and maintenance are extra, so leave budget headroom beyond the payment it calculates.
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⚠️ Estimates are for general planning only and exclude insurance, fuel, maintenance and lender-specific fees. Confirm exact terms with your lender.