Car Payment Affordability Calculator

Calculate the maximum car price you can afford from your monthly payment budget.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Auto Loans

$/mo
%
months

Max Car Price

$25,554.34

Total Interest

$4,445.66

Affordability

Max Vehicle Price$25,554.34
Total Interest Paid$4,445.66
Total Cost$30,000.00
Loan Term60 months

Use the Car Payment Affordability Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only. Results are estimates based on the information you provide and the assumptions described on this page.

How It Works

Most buyers shop by sticker price, but a smarter starting point is the monthly payment you can comfortably carry. Working backward from that number tells you the maximum car price within reach. Knowing your ceiling before you walk onto a lot keeps the conversation grounded.

Behind the scenes, a standard auto loan formula converts your target payment into a principal, the amount you can actually borrow. It weighs three things together: the monthly payment you've chosen, the loan term, and the interest rate you enter.

The price on the windshield is only part of what you'll pay. Sales tax, registration, and insurance all ride on top, and leaving them out of your math is the quickest way to overshoot what you can truly afford. Build them into your planning so the payment you commit to reflects the full cost of ownership, not just the loan.

Example: Affordable Car Price

  1. 1 Input your desired monthly car payment: $550. Input your preferred loan term: 60 months. Input an estimated interest rate: 7.5%.
  2. 2 The calculator uses the present value of an annuity formula to find the maximum principal: PV = PMT × [1 − (1 + r)^−n] ÷ r, where PMT is the monthly payment, r is the monthly interest rate (7.5% ÷ 12 = 0.625%) and n is the number of payments (60).
  3. 3 Based on your inputs, the maximum amount you can finance is $27,447.92. The 60 payments total $33,000, of which $5,552.08 is interest.
  4. 4 This $27,447.92 is what the loan covers; any down payment adds to the price you can pay. Sales tax, registration and insurance come on top, and they can add thousands to the total cost.

Source: CFPB — Auto Loans · Last updated: September 2026

Frequently Asked Questions

How much car can I afford on my monthly budget?
Use the 20/4/10 rule: 20% down payment, no longer than a 4-year loan, and total car expenses under 10% of gross income. At 6.5%, a $500 monthly payment supports a loan of about $21,084 over 48 months or $25,554 over 60 months; any down payment adds to the price you can pay.
What percentage of income should a car payment be?
Financial advisors recommend keeping your car payment under 10-15% of your monthly take-home pay. Total transportation costs including insurance, gas, and maintenance should stay under 20% of take-home pay.
Does a longer loan term let me afford a more expensive car?
A longer term lowers the monthly payment but increases total interest paid significantly. A 72-month loan costs thousands more in interest than a 48-month loan and you risk being underwater on the loan for years.

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