Car affordability calculator
Start with a comfortable monthly budget. Find the vehicle price that fits it.
Your numbers
Includes entered taxes & fees in both modes.
Based on the assumptions you enter.
- Available monthly payment
- $550.00
- Maximum loan budget
- $28,109.77
- Monthly running costs
- $250.00
A budget ceiling, not a lending decision. Keep a separate reserve for repairs and unexpected costs.
Your options, side by side
| Option | Monthly payment | Total interest | Total cost |
|---|
Your path to paid off
Remaining loan balanceWhere your money goes
Monthly amortization
Unrounded calculation; values displayed to cents| Month | Payment | Principal | Interest | Balance |
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Understand the numbers
How this calculator works
A payment is only part of owning a car. This calculator first reserves your estimate for insurance, fuel and maintenance, then turns the remaining budget into a maximum loan amount. Taxes and fees use part of that loan, so the vehicle price ceiling is lower than the available purchase budget. It does not assess income, emergency savings or lender approval.
A worked example
With an $800 total monthly budget and $250 reserved for running costs, $550 remains for the loan. At 6.5% over 60 months, that supports about $28,110 of borrowing before your down payment, taxes and fees are applied.
The formula, in plain sight
Payment budget = total budget − running costs. Maximum loan = payment budget × (1 − (1 + r)⁻ⁿ) ÷ r. Vehicle price = (maximum loan + down payment − fees − title) ÷ (1 + tax rate). At 0% APR, maximum loan = payment budget × months.
Keep your comparison going
Learn more from the Consumer Financial Protection Bureau’s auto loan resources. Confirm contract details with your lender.
Frequently asked questions about affordability
How much car can I afford based on my income?
Build a monthly budget from take-home pay after regular bills, debt obligations, savings, and other priorities. Include insurance, fuel, and maintenance before deciding how much remains for a loan payment. This calculator turns the budget you enter into an estimated vehicle price using your down payment, APR, term, tax, and fees; it does not judge whether the budget is comfortable.
Related: Car payment calculator
How much should I spend on a car if I make $50,000 a year?
A $50,000 salary is about $4,167 per month before taxes, but that figure does not show take-home pay or your other expenses. There is no reliable car price based on salary alone. Set a monthly budget that leaves room for housing, debt, savings, insurance, fuel, and repairs, then estimate a vehicle price from that amount.
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What percentage of my income should go toward a car payment?
There is no percentage that fits every household. A payment that works for one buyer may be too high for someone with different rent, debt, savings, insurance, or family costs. Budget from take-home income and include the full cost of owning the car. Use the calculator to test a monthly budget, then check whether the result leaves room for other priorities.
How much car can I afford with a $500 monthly payment?
A $500 loan payment supports about $25,251 of principal over 60 months at 7% APR, assuming no taxes, fees, or down payment are included in that amount. A vehicle price may need to be lower once taxes and fees are financed. If $500 is your total monthly car budget, subtract insurance, fuel, and maintenance first.
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Should I calculate car affordability before or after taxes?
Use take-home pay after payroll taxes and deductions when setting your monthly budget, because that is closer to the money available for bills. Then include the vehicle’s sales tax and fees when estimating its purchase price. Tax treatment differs by location and transaction, so enter a verified rate and compare the result with an itemized dealer quote.
Related: Out-the-door price calculator
Does car affordability include insurance, gas, and maintenance?
This calculator includes those costs only when you enter them in the monthly running-cost field. Add realistic estimates for insurance, fuel, and maintenance before the tool calculates a vehicle price. Costs vary by driver, car, coverage, mileage, and location, so get quotes or use your actual spending where possible. Registration, taxes, and fees are entered separately.
Related: Car payment calculator