Car Affordability Calculator
Find out how much car you can afford from your monthly budget, interest rate, loan term, and down payment. Free and accurate.
Calculator by Toolsloft ↗- Max car price
- $23,690.22
- Max loan
- $20,690.22
This calculator turns the monthly payment you can afford into the largest car loan and total sticker price you can take on. Run it before shopping so you set a price ceiling that fits your budget, interest rate, term, and down payment rather than the dealer's.
How this is calculated
The maximum loan is the present value of your monthly payments, payment times (1 minus (1 plus monthly rate) raised to the negative number of months) divided by the monthly rate, and the max price adds your down payment to that loan.
How to use
- Enter the monthly payment you can comfortably afford.
- Enter the annual interest rate and loan term in months.
- Add your down payment to see the max car price and loan you qualify for.
Examples
- $400/mo at 6% / 60 mo, $3,000 down:
max price $23,690.22 - Max loan only:
$400/mo → loan $20,690.22
FAQ
- How is the maximum car price calculated?
- The tool finds the largest loan your monthly budget can support at the given rate and term, then adds your down payment. Max price = max loan + down payment.
- What is the max loan amount?
- It is the present value of your monthly payments, the largest principal that amortizes to exactly your monthly budget over the loan term.
- Should I spend my whole budget on the payment?
- No. Remember to leave room for insurance, fuel, maintenance, and registration, which are not included in the loan payment.