Car Affordability Calculator

Find out how much car you can afford from the monthly payment you're comfortable with. Enter your target payment, loan term, rate, down payment, and trade-in to see your maximum car price.

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Car Affordability

Max price from your payment

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Max Car Price
Max Loan Amount
Down + Trade-In
Total Buying Power
Total Interest Paid

How Much Car Can You Afford?

Instead of starting with a car price, this tool works backward from the monthly payment you're comfortable with. It calculates the maximum loan that payment can support at your rate and term, then adds your down payment and trade-in to find your total buying power — and backs out sales tax to give the sticker price you can actually afford. A common guideline is to keep your total car costs (payment, insurance, fuel, maintenance) under about 15–20% of your take-home pay.

For example, a $450/month budget over 60 months at 7% APR supports a loan of about $22,700. Add a $3,000 down payment and you can afford a roughly $25,700 car (before tax). Shortening the term raises the payment but cuts interest; lengthening it lowers the payment but you pay more interest and risk being "upside down." Use this to shop with a firm number in mind and avoid dealer payment-stretching.

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Start From Payment

Pick a comfortable monthly payment; the tool finds the car price it supports — not the other way around.

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20/4/10 Rule

Put 20% down, finance no longer than 4 years, and keep total car costs under 10% of gross income.

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Avoid Long Terms

72- and 84-month loans lower the payment but pile on interest and leave you owing more than the car's worth.

FAQ

A common rule keeps your total monthly car costs (loan payment, insurance, fuel, maintenance) under 15–20% of your take-home pay. Decide the monthly loan payment that fits that budget, enter it here, and the calculator shows the maximum car price you can afford with your down payment and rate.
It's a car-buying guideline: put at least 20% down, finance for no more than 4 years (48 months), and keep total transportation costs at or below 10% of your gross income. Following it helps you build equity in the car and avoid long, expensive loans.
Generally no. A longer term (72–84 months) lowers the monthly payment but greatly increases total interest, and you'll likely owe more than the car is worth for years (being "underwater"). It's usually better to buy a cheaper car on a shorter term than to stretch the loan.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Peer-reviewed formulas & official U.S. government data