Car Affordability Calculator
Find the car price your budget supports.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
The maximum car price shown here is the most you can spend on a vehicle while keeping the monthly payment within a budget you set, given the loan rate, term and any down payment. It matters because buyers usually shop by sticker price, yet what actually strains a household is the monthly payment, so working backward from an affordable payment keeps the purchase realistic. This car affordability calculator converts your rate to a monthly figure, then reverses the loan payment formula to find the largest loan that payment can support over the term, and adds your down payment to give the total price you can target. Reversing the amortization formula is the right method because it is the exact math a lender uses to size a payment, so the loan it returns is one a lender would actually approve at those terms. Shoppers use a car affordability calculator to set a price ceiling before visiting a dealer, to see how a bigger down payment or a longer term changes their range, and to avoid being upsold. Remember the price this returns is the amount financed plus your down payment; taxes, title, registration, insurance and fees are extra, so leave room in the budget for them and for the running costs of ownership.
Loan = payment × (1 − (1 + r)^−term) ÷ r, r = rate ÷ 1200 · Price = loan + down payment
The monthly rate r is the annual rate divided by 1200. The loan a payment supports is the present value of that payment stream: payment × (1 − (1 + r)^−term) ÷ r, which discounts every future payment back to today. Adding your down payment gives the full price you can afford, since the down payment is cash on top of the borrowed amount. A larger payment, lower rate or longer term all raise the loan the same budget supports.
Source:Consumer Financial Protection Bureau (CFPB)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter monthly payment budget, interest rate and loan term.
- 2
Adjust the options
Adjust down payment if they apply — sensible defaults are already set.
- 3
Read your result
Max car price updates instantly as you type — no button to press.
Frequently asked questions
How much of my income should go to a car?
A common guideline caps total transportation costs — payment, insurance, fuel and maintenance — at around 10–15% of take-home pay, with the loan payment itself well under that. Some advisers suggest a 20% down payment, a term no longer than 48 months, and payments under 10% of income. Enter a payment that fits comfortably alongside your other bills rather than the largest one a lender will approve, since approval limits often exceed what is wise.
Does a longer loan term let me afford more car?
It raises the sticker price your budget reaches, because spreading the balance over more months lowers each payment, so the same payment supports a larger loan. The catch is that a longer term means more total interest and a higher risk of owing more than the car is worth as it depreciates. Stretching to 72 or 84 months to buy a pricier vehicle often costs far more overall, so weigh the larger range against the added cost.
Is the price shown the total cost of the car?
No. The figure is the amount you finance plus your down payment — the vehicle's price only. On top of it come sales tax, title and registration fees, dealer documentation charges and often add-ons, any of which can add several percent. Ongoing costs of insurance, fuel, maintenance and repairs are separate again. Aim a little below the maximum this tool returns so those extra upfront and running costs still fit your overall budget.
How does the down payment affect affordability?
A down payment is cash you pay upfront, so it adds directly to the car price you can afford on top of the loan your budget supports. It also shrinks the amount financed, which lowers total interest and reduces the chance of being underwater on the loan early on. A larger down payment can sometimes earn a better rate too. Increase the down payment field to see the target price rise dollar for dollar.
What interest rate should I use?
Enter the annual percentage rate you expect to be offered, which depends heavily on your credit score, the loan term, and whether the car is new or used. Buyers with strong credit qualify for the lowest rates, while used-car and longer-term loans usually carry higher ones. If you have not been pre-approved, use a conservative rate and refine it once a lender quotes you, then recheck how the affordable price shifts with the real number.