How much car can I afford? Start from what you can comfortably pay each month and work backwards to a car price. This car affordability calculator turns your monthly budget, down payment and loan terms into the maximum price you should be shopping for.
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How it works
Your monthly payment, interest rate and term decide how much a lender will let you borrow. Add your down payment and trade-in, and you get the total you can spend. If sales tax is added on top of the price where you live, the calculator removes it so the result is the sticker price you can afford.
How much should I spend on a car?
A common guideline is to keep the car payment around 10–15% of your take-home pay, and total car costs (payment, fuel, insurance and maintenance) below about 20%. Enter your monthly income to see where your budget sits.
Tips to afford a better car
- Save a larger down payment before you buy.
- Improve your credit score to qualify for a lower rate.
- Consider a nearly new car. It has already taken its biggest drop in value.
Frequently asked questions
Should I use a longer loan to afford a more expensive car?
A longer term raises the price you can afford, but you pay more interest and stay in debt longer. Try 48 and 72 months in the calculator to see the difference.
Does this include insurance and fuel?
No, it covers the purchase only. Use the total cost of ownership calculator to see the full monthly cost of running the car.
How much car can I afford on my salary?
A common rule is to keep the car payment at 10–15% of your take-home pay. For example, with take-home pay of 4,000 a month, that is a payment of about 400 to 600. Enter your income above to see your own range.
Results are estimates for planning only. Related: Car loan calculator