Car Affordability Calculator

The Car Affordability Calculator works out the maximum car price you can realistically afford based on your budget, financing terms, and local taxes — so you know your number before stepping into a dealership. Enter your monthly income, maximum monthly payment, down payment, trade-in value, interest rate, and loan term to see your maximum affordable car price. Secondary outputs include your estimated monthly payment, total loan amount, total interest paid, total cost of ownership, and total upfront costs.

Your gross monthly income before taxes

How much you can afford monthly for car payment

Amount you can pay upfront

Current value of your trade-in vehicle

Outstanding loan balance on trade-in

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Annual interest rate for the loan

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Your local sales tax rate

Title, registration, documentation fees

Results

Maximum Car Price You Can Afford

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Estimated Monthly Payment

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Total Loan Amount

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Total Interest Paid

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Total Cost of Ownership

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Total Upfront Costs

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Results Table

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Frequently Asked Questions

How much of my income should I spend on a car payment?

Financial experts typically recommend spending no more than 10-15% of your gross monthly income on a car payment. This ensures you have enough money left for other expenses and savings.

Should I include taxes and fees in my car loan?

Including taxes and fees in your loan reduces your upfront costs but increases your total interest paid over time. If you have limited cash for a down payment, financing these costs can make sense.

How does my trade-in value affect what I can afford?

Your trade-in value acts like additional down payment money, reducing the amount you need to finance. However, if you owe more on your trade-in than it's worth, that negative equity will reduce your purchasing power.

Is a longer loan term always better for affordability?

Longer loan terms lower your monthly payment but significantly increase the total interest you'll pay. You may also end up owing more than the car is worth for several years.

What other costs should I consider beyond the monthly payment?

Don't forget to budget for insurance, fuel, maintenance, repairs, and registration fees. These ongoing costs can add $200-500+ per month depending on the vehicle.

How does my credit score affect car affordability?

Your credit score directly impacts your interest rate. A higher score can save you thousands in interest, effectively allowing you to afford a more expensive car for the same monthly payment.

Should I buy new or used to maximize affordability?

Used cars typically offer better value for affordability since they avoid the steep depreciation of new vehicles. However, consider warranty coverage and potential repair costs when comparing options.