Auto Affordability Calculator

Common rules of thumb cap the monthly payment at 10 to 15% of take-home pay, and total auto costs (payment + insurance + gas + maintenance) at about 15 to 20%. Total cost of ownership matters more than the sticker price.

A car payment calculator solves the monthly payment from a known price. This calculator does the inverse: it solves the max vehicle price from a known monthly budget. They're complementary tools.

Use what you have been pre-approved for, or a realistic estimate based on your credit profile. As of recent years, average auto rates for prime borrowers have ranged from 5 to 9% APR depending on term, vehicle age, and credit score. New cars typically get lower rates than used cars.

Longer terms reduce monthly payments but increase total interest paid. They also raise the risk of being upside-down (owing more than the car is worth) for longer. Many planners recommend 36 to 60 months; 72 and 84 months are common but costlier.

Yes, trade-in reduces the loan principal just like a down payment. The calculator combines down payment and trade-in as cash toward the purchase. If you owe money on the trade-in, subtract that from the trade-in value before entering it.

Not included in this calculator. They are real ongoing costs and meaningfully change affordability. Insurance varies by car, driver, and state. Gas depends on miles driven and MPG. Maintenance/repairs grow with age and mileage. Budget for them separately when comparing vehicles.