Find the car price you can afford from a monthly payment, rate and term.
Calculated locally in your browser.
How do you calculate how much car you can afford?
Maximum loan = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate (APR ÷ 12) and n is the months. Affordable price = maximum loan + down payment + trade-in. A $400 payment at 6% APR over 60 months supports about a $20,690 loan, or roughly a $23,690 car with $3,000 down.
Understanding your result
A longer term or lower rate lets the same monthly payment support a bigger loan, but a longer term also means more interest overall. The price shown is the vehicle budget before tax and fees, so leave room for registration, insurance, fuel and maintenance when you decide.
Formula and method
Maximum loan = payment × (1 − (1 + r)^−n) ÷ r, where r is the monthly rate (APR ÷ 12) and n is the number of months. Affordable price = maximum loan + down payment + trade-in.
Worked example
A $400 monthly payment at 6% APR over 60 months supports a loan of about $20,690. With a $3,000 down payment, that is roughly a $23,690 car.
How to use this tool
- Enter the monthly payment you can comfortably afford.
- Enter the APR and loan term in months.
- Add your down payment and any trade-in value.
- Read the affordable car price and the loan details.
Common mistakes to avoid
- Forgetting tax, registration and fees on top of the car price.
- Stretching the term just to afford a more expensive car.
- Ignoring running costs like insurance, fuel and maintenance.
About the Car Affordability Calculator
The Car Affordability Calculator works backwards from a monthly payment you are comfortable with to the loan — and the car price — it can support. Add your down payment and trade-in to see the total budget for the vehicle.
Who should use this tool
Car buyers setting a budget, and anyone comparing financing before visiting a dealer.
Benefits
- Turns a comfortable monthly payment into a car price.
- Includes down payment and trade-in value.
- Shows the maximum loan, total paid and total interest.
- Private — no figures leave your browser.
Practical use cases
- Setting a realistic budget before car shopping.
- Seeing how a longer term changes the price you can afford.
- Comparing the effect of a bigger down payment.
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Frequently asked questions
How much car can I afford?
Decide a comfortable monthly payment, then enter your APR, term and down payment. The calculator shows the matching loan and car price.
Does a longer loan let me afford more?
Yes, a longer term supports a higher price for the same payment, but you pay more total interest and stay in debt longer.
Is tax included in the price?
No. The result is the vehicle budget before sales tax and fees, so set aside extra for those costs.