Car Affordability Calculator
Determine how much car you can afford based on your income, expenses, and other financial factors. Our calculator helps you plan your auto purchase wisely while staying within your budget.
Recommended Budget Guidelines
Financial experts typically recommend:
- Spending no more than 10-15% of your monthly income on car payments
- Keeping total vehicle expenses (payment, insurance, fuel, maintenance) below 20% of your monthly income
- Making a 20% down payment to avoid being upside-down on your loan
You Can Afford
$0
Based on your financial information
Payment Details
| Monthly Payment | $0 |
|---|---|
| Total Loan Amount | $0 |
| Total Interest | $0 |
| Total Cost of Loan | $0 |
| Total with Down Payment | $0 |
Tips for Buying a Car Within Your Budget
- Consider buying used to get more value for your money
- Shop around for the best interest rates
- Get pre-approved for a loan before visiting dealerships
- Factor in additional costs like insurance, maintenance, and fuel
About the Car Affordability Calculator
Our car affordability calculator helps you determine how much you can realistically spend on a vehicle while maintaining financial stability. It considers your income, existing debts, down payment, loan terms, and other factors to provide a comprehensive estimate of what you can afford.
How Car Affordability is Calculated
The calculator uses the following steps to determine affordability:
- Calculates your maximum recommended monthly payment based on income and existing debts
- Determines the loan amount you can afford based on the payment, interest rate, and loan term
- Adds your down payment and trade-in value to determine the total vehicle price you can afford
- Accounts for sales tax and other fees in the final price
Why Affordability Matters
Buying a car that fits comfortably within your budget helps you:
- Avoid financial stress from high monthly payments
- Maintain flexibility for other financial goals
- Reduce the risk of becoming upside-down on your loan
- Keep your debt-to-income ratio at a healthy level