Find out how much car you can afford based on your monthly budget, interest rate, and loan term. Factor in down payment and sales tax.
60-month new car loans — updated April 2026
| Lender | Rate | APR | Est. Payment | Action |
|---|---|---|---|---|
Credit Union AutoBest Rate | 4.990% | 5.150% | $377/mo | Check Rate |
Online Auto Loans | 5.490% | 5.650% | $382/mo | Check Rate |
Auto Finance Direct | 5.990% | 6.250% | $387/mo | Check Rate |
National Bank Auto | 6.490% | 6.750% | $392/mo | Check Rate |
Dealer Finance | 6.990% | 7.250% | $397/mo | Check Rate |
Rates shown are for illustrative purposes. Actual rates may vary based on credit score, loan amount, down payment, and market conditions. Contact lenders directly for personalized rate quotes.
Before you step onto a car lot, you need to know your budget. This calculator uses the 20/4/10 rule — 20% down, 4-year term max, and total car expenses under 10% of gross income — to determine a responsible vehicle price range that will not strain your finances.
The Auto Affordability Calculator determines the maximum vehicle price a buyer can afford based on their monthly payment budget, down payment, and expected financing terms. The methodology reverses the standard amortization calculation, solving for the loan amount given a target monthly payment, interest rate, and loan term. It accounts for sales tax being added to the vehicle price before calculating the financed amount, and subtracts the down payment from the total to arrive at the amount to finance. This calculator helps buyers avoid the common trap of looking at vehicles outside their true budget range. Real-world use cases include setting realistic expectations before visiting dealerships, comparing how different monthly budgets affect the vehicle price range, and understanding how down payments reduce the financed amount and monthly payment. Key limitations include not accounting for insurance costs, fuel, maintenance, registration fees, or the total cost of ownership over the loan period, which together with the payment can strain budgets more than the car payment alone.
Result: With a $500/month budget, 5-year loan at 5.5% APR, $3,000 down, and 7% sales tax: You can afford approximately $27,700 vehicle price. Monthly payment would be ~$499. Without any down payment at the same terms, your budget allows only ~$25,300.
Understanding how to use financial calculators effectively requires knowing the underlying concepts. The auto affordability involves several key financial principles that affect your results.
Our calculator uses industry-standard formulas verified by certified financial professionals. The inputs you provide are processed entirely in your browser — we never store or transmit your financial data. Results update in real time as you adjust values, allowing you to explore different scenarios quickly.
For the most accurate results, use current figures from your most recent financial statements. If you are unsure about a specific input, our default values represent national averages based on data from the Federal Reserve, IRS, and Bureau of Labor Statistics.
Remember that calculator results are estimates for educational purposes. Your actual financial situation may differ based on factors like your credit score, specific lender terms, local regulations, and market conditions. We recommend consulting with a qualified financial professional before making major financial decisions.
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Results are estimates only and not financial advice. Calculator logic verified by Michael Chen, CFP®. Full disclaimer · Methodology