Car Affordability Calculator: How Much Car Can I Afford?
Find the car price that fits your monthly budget, including the costs of owning it. Free, instant, no signup.
Want to estimate what a lender might approve? Try the car loan approval calculator.
Use after-tax income. Other expenses should include housing, food, and debt payments, excluding the car costs entered below. Replace any payment for a car you are trading in rather than counting it twice. All starting values are examples.
Net trade-in equity = trade-in value minus the loan still owed; enter a negative amount if you owe more. Sales tax is applied to the full vehicle price; local trade-in tax credits are not modeled. Fees are financed.
Estimated maximum car price, before taxes and fees
$31,590
- Monthly loan payment
- $600
- Total monthly car costs
- $1,000
- Loan amount
- $30,301
- Total loan interest
- $5,699
- Price with taxes and fees
- $34,301
- Left monthly for savings and cushion
- $800
This is the upper limit using your entered budget. Choosing a cheaper car leaves more room for unexpected expenses. Savings shown above include your savings target.
How much car can I afford based on income?
Use your actual spending and savings goals instead of a salary multiple. With $5,000 take-home pay, $3,200 in other expenses, $800 toward savings, and $400 in car running costs, you have $600 a month available for a loan payment.
How the car budget is calculated
The calculator finds the loan amount supported by your monthly payment at the APR and term you enter. It adds your down payment and net trade-in equity, subtracts fees, then removes sales tax to estimate the vehicle sticker price. At zero interest, the loan is simply payment × months.
The estimate assumes a fixed APR, equal monthly payments, and financed fees, with no balloon payment. Actual sales tax rules, dealer costs, lender terms, and rounding can differ. It is a budget estimate rather than loan approval.
Review the CFPB guidance on budgeting for an auto loan and compare total interest as well as monthly payments.
Frequently asked questions
How much car can I afford on my salary?
Start with monthly take-home pay, subtract your other expenses, savings target, and car running costs. The remaining amount is your maximum loan payment. This calculator converts that payment into a vehicle price using your loan terms, down payment, taxes, and fees.
Does a longer loan term let me afford more car?
A longer term increases the loan supported by the same payment, but usually increases total interest and the risk of owing more than the vehicle is worth. Compare shorter terms and total interest before deciding.
Does this include insurance and maintenance?
Yes. Enter monthly estimates for insurance, fuel or charging, and maintenance, registration, and parking. These reduce the money available for a loan payment.
Can I use this for a used car or a zero-interest loan?
Yes. Enter the costs and APR for the vehicle you are considering. At 0% APR, the loan amount equals the monthly payment multiplied by the number of payments.