About the Car Affordability Calculator
Working backward from a monthly payment tells you the realistic sticker price to shop for. This calculator turns your budget, down payment, trade-in, rate, and term into the vehicle price they support.
How it’s calculated
Max loan = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate and n the term in months. Affordable price = max loan + down payment + trade-in (before sales tax).
Example calculation
A $400/month budget over 60 months at 7%, with $3,000 down, supports roughly a $23,200 car.
Frequently asked questions
Should I budget by payment or by price?
Shop by total price, but use the payment to stay disciplined. A long term can make an expensive car 'fit' a payment while costing far more in interest.
What about insurance and fuel?
This is the purchase price only. Budget separately for insurance, fuel, registration, and maintenance — the total cost of ownership calculator adds those up.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.