Car Affordability Calculator

How much car can you actually afford? Start from a monthly payment you're comfortable with, add your loan terms and down payment, and this works backwards to the maximum car price — plus the loan amount, total interest and total cost. Updates as you type.

How it works

It reverses the standard loan formula to find the biggest loan your monthly payment supports, then adds your cash down payment:

max loan = payment × [ 1 − (1 + r)⁻ⁿ ] ÷ r

max car price = max loan + down payment

where r is the monthly rate (APR ÷ 12) and n is the term in months.

• Down payment adds straight to your budget and cuts the interest you pay.
• A shorter term raises the monthly payment but slashes total interest.
• Remember the extras — insurance, fuel, tax and maintenance aren't in the loan payment.

This is an educational estimate of the loan financing only. It excludes taxes, fees, insurance and running costs. Not financial advice.

FAQ

How much car can I afford on my budget?

Start from the monthly payment you are comfortable with, then work backwards. The calculator uses the loan formula in reverse: from your monthly budget, APR and term it finds the largest loan those payments support, then adds your down payment to give the maximum car price.

What percentage of income should a car payment be?

A common guideline is to keep your total car costs (payment, insurance, fuel, maintenance) under about 15–20% of your take-home pay, with the loan payment itself often kept under 10–15%. Enter a monthly payment within that range to see what car price it supports.

Does a bigger down payment let me afford more car?

Yes — every dollar of down payment adds directly to the car price you can afford, on top of what the loan covers, and it also reduces the interest you pay. A larger down payment and a shorter term are the two best ways to spend less overall.

Should I choose a longer loan term to afford more?

A longer term lowers the monthly payment so you can technically afford a pricier car, but you pay far more interest and risk owing more than the car is worth. The calculator shows total interest so you can see the real cost of stretching the term.

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