Car Affordability Calculator
Find the most car you can afford from a monthly budget or your income, with taxes, fees and trade-in
Your Budget
You can afford a car priced up to
$27,524
$500.00 a month for 60 months at 7.00%, plus $5,000 down
Loan amount
$25,251
Sales tax
$1,927
Total interest
$4,749
Total cost of the car
$35,000
price + tax + fees + interest
The 20/4/10 Rule
- Misses: put at least 20% downYour down payment and trade-in equity cover 18% of the price.
- Misses: finance for 4 years or lessYou chose 60 months.
Longer loans buy more car, at a cost
Same $500 payment, different terms
How the purchase is paid for
$30,251 with tax and fees
Price You Can Afford by Loan Term
| Loan Term | Car Price | Total Interest |
|---|---|---|
| 36 months | $19,059 | $1,807 |
| 48 months | $23,439 | $3,120 |
| 60 months | $27,524 | $4,749 |
| 72 months | $31,334 | $6,673 |
| 84 months | $34,887 | $8,871 |
How Much Car Can You Afford?
The calculator works backwards from your payment: it finds the loan that payment can repay, adds your down payment and trade-in equity, and takes off fees and sales tax to get the highest sticker price. The 20/4/10 rule is a common guide: 20% down, a loan of four years or less, and total car costs under 10% of your gross income.
The Formulas
Loan = payment × (1 − (1 + r)^−n) ÷ r
Price = (loan + down + trade equity − fees) ÷ (1 + tax)
Trade equity = trade-in value − amount owed
Many states tax only the price minus your trade-in, which would let you afford slightly more.
Car Buying Tips
- •Get preapproved for a loan before you visit a dealer
- •Negotiate the price first, then the financing
- •Long loans can leave you owing more than the car is worth
- •Budget for insurance, fuel and maintenance too
- •Compare the total cost, not just the monthly payment