How much car can I afford?
A practical car budget starts with the monthly amount that fits alongside housing, savings, insurance, fuel and maintenance. This calculator converts that payment into the loan principal supported by your APR and term, then adds your down payment and net trade-in credit while allowing for sales tax and fixed purchase fees.
Affordable price = (loan amount + down payment + trade-in − fees) ÷ (1 + tax rate)
Why APR and loan term change buying power
A lower APR sends more of every payment toward principal, increasing the vehicle price supported by the same monthly budget. A longer term also lowers the payment on a given balance, but usually increases total interest and keeps you in debt longer. Compare a shorter term before treating the highest result as your target.
Down payment and trade-in details
Enter only the equity in a trade-in: its value minus any loan payoff. Tax treatment for trade-ins varies by state, so this calculator uses a simplified estimate. A dealer’s out-the-door quote should separate vehicle price, taxes, registration, documentation charges and optional products.
Remember the costs beyond the payment
Affordability is broader than loan approval. Add insurance, fuel or charging, parking, repairs, registration and depreciation to your monthly plan. Keeping room for variable costs makes the result more useful than choosing the maximum a lender may approve.