Car Affordability Calculator
Based on Income
Calculate car affordability based on your income
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Based on Monthly Payment
Find max car price from a target monthly payment
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Formula
Max Loan = Payment x ((1+r)^n - 1) / (r x (1+r)^n); Max Price = Max Loan + Down Payment
Frequently Asked Questions
How much of my income should I spend on a car?
The 20/4/10 rule is a popular guideline: put at least 20% down, finance for no more than 4 years, and keep total transportation costs (payment, insurance, gas, maintenance) under 10% of gross income. Many experts recommend keeping just the car payment at 10-15% of take-home pay.
Should I include insurance and maintenance in my budget?
Yes. Your total cost of ownership includes the car payment, insurance ($100-$250/month), gas ($100-$300/month), and maintenance ($50-$100/month). Budget for the full picture, not just the monthly payment.
Does a longer loan term mean I can afford more car?
A longer term lowers your monthly payment but increases total interest paid. You may also owe more than the car is worth for longer. Stick to 60 months or less and focus on what fits your overall budget.
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