Car Affordability Calculator — How Much Car Can I Afford?

Start from what you can comfortably pay each month and work backward to a price. Enter your target monthly payment, the APR you expect, the term, and your down payment.

How this calculator works

We reverse the loan formula: from your monthly payment, APR, and term we solve for the loan principal you can support, then add your down payment to get the total price. Remember this is the financed price — tax and fees come on top.

What changes the number

A common guideline is to keep total car costs (payment, insurance, fuel, maintenance) under 15–20% of take-home pay.
The “20/4/10” rule suggests 20% down, a loan no longer than 4 years, and total transport costs under 10% of gross income.
Leave room for tax, title, and registration, which can add several percent to the price.

Frequently asked questions

Does this include insurance and gas?

No — it only sizes the loan from your payment. Insurance, fuel, and maintenance are separate; use the cost-of-ownership calculator to see the full monthly picture.

Should I stretch the term to afford more car?

It lets you finance a higher price, but you pay much more interest and stay underwater longer. It’s usually smarter to buy a cheaper car than to extend the loan.

How much should I put down?

More down means a lower payment and less interest. On a new car, 20% down is a classic target; on a used car, enough to avoid being underwater is the priority.