Loans
Car Affordability Calculator
Work backward from a payment you can actually live with. Enter your target monthly payment, down payment, rate, and loan term to see the total car price it buys — and how much of it is interest.
Tested against worked examplesHow we verify
A common guideline keeps total car costs under 15–20% of take-home pay.
Car you can afford: $25,726
Car you can afford
$25,726
Sticker price your payment and down payment support.
- Loan amount
- $22,726
- Down payment
- $3,000
- Total interest
- $4,274
- Total you'll pay
- $30,000
What the financing costs over the loan.
Compare scenariosTry three values of one input
| Comfortable monthly payment | |||
|---|---|---|---|
| Car you can afford | $23,201 | $25,726+$2,525 | $28,251+$5,050 |
| Loan amount | $20,201 | $22,726+$2,525 | $25,251+$5,050 |
| Total interest | $3,799 | $4,274+$475 | $4,749+$950 |
| Total you'll pay | $27,000 | $30,000+$3,000 | $33,000+$6,000 |
Every other input stays at the value you set above — currently $450 for comfortable monthly payment. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
The affordable loan is the present value of your monthly payments at the given APR and term — the balance those payments can pay off. Add your down payment to get the car price. Total interest is the sum of payments minus the loan amount.
This estimates the financing only. Budget separately for sales tax, registration, insurance, fuel, and maintenance, which add meaningfully to the true cost of owning — see our Auto Loan calculator for a full payment breakdown.
What this assumes
- Guidance-based: total transport costs are kept under a share of take-home pay, rather than under a share of gross.
- Insurance, fuel and maintenance are estimates you enter and vary by driver, vehicle and postcode more than any other line.
- Depreciation is excluded from the monthly figure even though it is usually the largest cost of owning a car.
What changes this number
- Term length
- Stretching to 72 months makes almost anything look affordable and extends negative equity.
- Running costs
- Insurance for a young driver can exceed the payment; the same car is a different decision at different ages.
- Down payment and trade-in
- Reduce the amount financed directly and shorten the period spent owing more than the car is worth.
A worked example
Take the $450/mo, $3k down, 7% scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Comfortable monthly payment
- $450
- Down payment (+ trade-in)
- $3,000
- Interest rate (APR)
- 7%
- Loan term
- 5 years
What it returns
- Car you can afford
- $25,726
- Loan amount
- $22,726
- Down payment
- $3,000
- Total interest
- $4,274
- Total you'll pay
- $30,000
Try an example
Frequently asked questions
How much car can I afford on my salary?
A common guideline keeps your total monthly car costs — payment plus insurance, gas, and maintenance — under 15–20% of your take-home pay. Decide the payment that fits that budget first, then this calculator shows the car price it supports at your rate and term.
Does a longer loan term let me afford more car?
On paper, yes — stretching to 72 or 84 months lowers the monthly payment, so the same payment 'buys' a pricier car. But you pay much more interest and risk owing more than the car is worth (being 'underwater'). Shorter terms are cheaper and safer.
How big a down payment should I make?
Enough to avoid being underwater as the car depreciates — often 10–20% for a new car. A bigger down payment shrinks the loan, lowers interest, and can improve your rate. Your trade-in value counts toward it.
This calculator helps answer
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.