See the maximum vehicle price and loan amount you can afford from your monthly budget, APR, term, and down payment.
Estimates only — not financial advice. Verify with your lender/advisor.
A car affordability calculator reverses the loan-payment math: it takes the monthly payment you can comfortably afford and works backward to the largest loan that payment supports at your APR and term, then adds your down payment to show the maximum vehicle price.
The maximum loan is found by reversing the amortization formula: L = M x ((1 + r)^n - 1) / (r x (1 + r)^n), where M is your monthly budget, r is the monthly rate (APR divided by 12), and n is the term in months. Adding your down payment gives the maximum vehicle price. Results are estimates, not financial advice.
Yes, a longer term raises the maximum loan amount for the same monthly payment, so you can afford a higher price. However, a longer term also means you pay more total interest over the life of the loan.
No. It estimates the vehicle price and loan amount from your monthly loan payment budget only. Insurance, fuel, maintenance, registration, and taxes are extra ongoing costs, so leave room in your budget for them.