Car Affordability Calculator
Shopping for a car usually starts with a monthly payment you are comfortable with, not a sticker price. This car affordability calculator works backward from your target payment: given the loan rate, term, and your down payment, it finds the most expensive car that fits. It is the inverse of a car loan calculator, which starts from a known price and tells you the payment. Knowing your maximum price keeps you from being talked into a longer term or a pricier car than your budget supports.
Calculate
Default result: $23,690.22
Car Affordability Calculator · Materials
calculators.dev
Most expensive car you can afford
400 × 6 × 5 × 3000
Shopping list
- Maximum loan amount
- $20,690.22
- Total interest paid
- $3,309.78
Est. total
$23,690.22
Estimate — confirm w/ supplier · calculators.dev
This calculator provides estimates for general informational purposes only and is not financial, investment, tax, or legal advice. Results are projections based on the figures you enter and the stated assumptions, and actual outcomes will differ. Consult a qualified financial professional before making borrowing, saving, or investment decisions.
Reviewed by the calculators.dev team · Last updated 2026-06-24
Formula reviewed against Present-value-of-an-annuity (inverse PMT) derivation — hand derivation (10-VERIFICATION.md)
How to calculate
Enter the monthly payment you can afford, the APR you expect on the loan, the term in years, and your down payment. The calculator finds the loan amount whose payment matches your target — the present value of that stream of payments — then adds your down payment to get the maximum car price. For $400 a month at 6% over 5 years with $3,000 down, you can afford a car up to about $23,690. The total interest line shows the cost of financing on top of the price.
Maximum loan = payment × ((1 + i)^n − 1) ÷ (i × (1 + i)^n), the present value of an annuity, where i is the monthly rate (APR ÷ 12) and n is the number of payments (years × 12). At a 0% rate it simplifies to payment × n. Maximum price = maximum loan + down payment. Total interest = payment × n − maximum loan. This is the algebraic inverse of the standard loan-payment formula.
Example calculation
A $400 monthly payment at 6% APR over 5 years supports a loan of about $20,690. Adding a $3,000 down payment, the most expensive car you can afford is about $23,690. Over the five years, the interest on that loan comes to roughly $3,310 — money on top of the car's price.
- maxPrice
- $23,690.22
- maxFinanced
- $20,690.22
- totalInterest
- $3,309.78
Assumptions
- The figure covers the loan and down payment only; taxes, registration, insurance, and fees are extra and reduce what you can spend on the car itself.
- The APR and term are fixed, and the full target payment goes toward principal and interest.
- A longer term raises the affordable price but also the total interest — compare terms before stretching the loan.
Common mistakes
- Forgetting taxes and fees. The affordable price is for the car plus financing; sales tax and fees come on top and shrink your real budget.
- Stretching the term to afford more car. A 7-year loan lowers the payment but piles on interest and risks owing more than the car is worth.
- Ignoring insurance and maintenance, which are ongoing costs beyond the loan payment.
Frequently asked questions
How much car can I afford?
Work backward from a monthly payment you are comfortable with. Enter that payment, the loan rate, term, and your down payment, and the calculator returns the maximum car price — then leave room for tax, insurance, and maintenance.
How is this different from an auto loan calculator?
An auto loan calculator starts from a car's price and gives you the payment. This calculator does the reverse: it starts from the payment you can afford and gives you the maximum price.
Does a bigger down payment help?
Yes. The down payment adds directly to the affordable price and reduces the loan, so a larger down payment lets you buy a more expensive car for the same monthly payment, with less interest.
Should I use the longest term to afford more?
Be careful. A longer term lowers the payment and raises the affordable price, but it sharply increases total interest and the time you spend potentially owing more than the car is worth.