Find out how much car you can afford. Enter your monthly budget, down payment, APR, and term to see the vehicle price that fits.
How Much Car Can You Afford?
This calculator works backward from a monthly payment you're comfortable with to the vehicle price it supports, factoring in your down payment, trade-in, APR, term, and sales tax. It answers the real question shoppers have: not "what's the payment on this car," but "what car fits my budget."
The 20/4/10 Rule
A widely used guideline: put at least 20% down, finance for no more than 4 years (48 months), and keep total monthly vehicle costs — including insurance — under 10% of your gross income. Cars bought this way are far less likely to leave you underwater on the loan.
Watch the Term Trap
Stretching to 72 or 84 months lets you "afford" a pricier car on the same payment, but you pay much more interest and stay underwater longer. The chart shows how your affordable price changes with term — use it to see the trade-off, not just the biggest number.
Tip: Budget for the total cost of ownership — insurance, fuel, maintenance, and registration — not just the loan payment. A cheaper car with lower insurance can free up real monthly cash.
Frequently Asked Questions
How much car can I afford on my salary?
A common rule is keeping total monthly car costs under about 10–15% of your take-home pay. Enter a payment in that range and this calculator shows the vehicle price it supports after your down payment and trade-in.
What is the 20/4/10 rule?
Put 20% down, finance for no more than 4 years, and keep total vehicle costs under 10% of gross income. It's a guideline to avoid overextending on a car loan.
Does a bigger down payment let me afford more car?
Yes. Your down payment and trade-in add directly to the price you can afford on top of the loan your budget supports, and they lower your interest costs.
Should I use a longer loan term to afford a nicer car?
You can, but it's risky. A longer term lowers the monthly payment but raises total interest and keeps you underwater longer. The chart shows how price scales with term so you can weigh it.
Does this include sales tax and fees?
It estimates sales tax based on the rate you enter and rolls it into the financed amount. Registration and dealer fees vary, so leave a little room in your budget for them.