How it works
Start from the payment that fits your budget, and this calculator works backward to the loan that payment supports, adds your down payment and trade-in, and removes sales tax and fees to find the sticker price you can shop for.
A common guideline is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance, fuel) under 10% of gross income. Enter your income to see how your payment compares.
Formula
Loan = payment × (1 − (1 + r)^−n) ÷ r; price = (loan + down + trade-in − fees) ÷ (1 + tax rate)
Questions people ask
How much should I spend on a car?
Guidelines vary, but keeping car payments under 10–15% of take-home pay and total transportation costs under about 20% leaves room for other goals.
Is a longer loan a good way to afford more car?
It raises the price you can reach but adds interest and increases the risk of owing more than the car is worth. Shorter terms are generally safer.
Does this include insurance and fuel?
No. Budget separately for insurance, fuel, maintenance and registration, which often add several hundred dollars a month.