Car Affordability Calculator
See the maximum vehicle price your monthly budget can support.
Inputs
How it works
We back-solve the loan amount your monthly budget supports at the chosen rate and term, then add your cash down and trade-in to determine total vehicle price.
Frequently asked questions
How is my monthly car loan payment calculated?
Monthly payment uses the standard amortizing-loan formula: P × r / (1 − (1 + r)⁻ⁿ), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
What is amortization?
Amortization is the schedule that breaks each payment into principal and interest. Early payments are mostly interest; later payments are mostly principal.
Will paying extra each month save me money?
Yes. Any extra you pay reduces the principal immediately, which reduces all future interest. Even small extra payments can shave years off a long loan.
Does this include taxes and insurance?
Unless the calculator has dedicated fields for tax and insurance, the result is the pure principal-and-interest payment. Add escrow items separately for the full housing cost.
Is APR the same as the interest rate?
Not quite. The interest rate determines the monthly payment, while APR also includes most lender fees, so APR is usually slightly higher than the note rate.