How this calculator works
It works backward from your payment. First it finds the largest loan your monthly budget can repay at your rate and term. Then it adds your down payment and trade-in equity and takes out sales tax and fees to find the highest vehicle price that fits.
- Pick a realistic monthly payment. Leave room for insurance, fuel, and maintenance.
- Use a real rate if you can. A pre-approval from a bank or credit union gives you a reliable number and a rate for the dealer to beat.
- Include your trade-in. If you owe more than it's worth, that difference reduces what you can spend.
Shop by total price, not by payment
Dealers often ask "what monthly payment are you looking for?" and then stretch the loan to hit it. Knowing your maximum price keeps the conversation on the number that matters. Once you have a car in mind, check the full cost in the Auto Loan Calculator or compare it with leasing in the Lease vs. Buy Calculator.
Frequently asked questions
How much car can I afford?
A common guideline is to keep your car payment at or below about 10% of your gross monthly income, and your total car costs (payment, insurance, fuel, maintenance) under about 15–20%. Enter your income above to see the 10% figure next to your budget.
What is the 20/4/10 rule?
It is a conservative rule of thumb: put at least 20% down, finance for no more than 4 years (48 months), and keep total transportation costs under 10% of gross income. Few buyers hit all three, but the closer you get, the less interest you pay and the lower your risk of owing more than the car is worth.
Why is the price I can afford lower than my loan amount plus down payment?
Because sales tax and fees come out of the same budget. This calculator assumes taxes and fees are added to the loan, so part of every payment covers them instead of the car itself.
Should I stretch to a 72- or 84-month loan to afford a nicer car?
A longer loan raises the price you can afford, but you will pay much more interest and may owe more than the car is worth for years. Compare the "Total interest" figure at 48, 60, and 72 months before deciding.
Does this include insurance, fuel, and maintenance?
No. It calculates the loan only. Leave room in your monthly budget for insurance, which can vary a lot by car, plus fuel or charging, maintenance, and registration renewals.
Last reviewed November 8, 2026. Estimates only; your lender's figures may differ.