Car Payment Affordability Calculator

Calculate the maximum car price you can afford from your monthly payment budget.

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Auto Loans

$/mo
%
months

Max Car Price

$25,554.34

Total Interest

$4,445.66

Affordability

Max Vehicle Price$25,554.34
Total Interest Paid$4,445.66
Total Cost$30,000.00
Loan Term60 months

Use the Car Payment Affordability Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Most buyers shop by sticker price, but a smarter starting point is the monthly payment you can comfortably carry. Working backward from that number tells you the maximum car price within reach, which matters more than ever with the average new vehicle projected to top $50,000 by 2026. Knowing your ceiling before you walk onto a lot keeps the conversation grounded.

Behind the scenes, a standard auto loan formula converts your target payment into a principal, the amount you can actually borrow. It weighs three things together: the monthly payment you've chosen, the loan term, and the interest rate, which for new-car loans is expected to sit near 7.5% by 2026.

The price on the windshield is only part of what you'll pay. Sales tax, registration, and insurance all ride on top, and leaving them out of your math is the quickest way to overshoot what you can truly afford. Build them into your planning so the payment you commit to reflects the full cost of ownership, not just the loan.

Example: Affordable Car Price

  1. 1 Input your desired monthly car payment: $550. Input your preferred loan term: 60 months. Input an estimated interest rate: 7.5%.
  2. 2 The calculator uses the present value of an annuity formula to determine the maximum principal you can afford. PV = PMT * [1 - (1 + r)^-n] / r, where PV is the present value (car price), PMT is the monthly payment, r is the monthly interest rate, and n is the total number of payments.
  3. 3 Based on your inputs, the maximum car price you can afford is approximately $27,600.
  4. 4 This $27,600 represents the vehicle's price before taxes, fees, and any down payment. Always consider these additional costs when budgeting, as they can add thousands to the total purchase price.

Source: CFPB — Auto Loans · Last updated: April 2026

Frequently Asked Questions

How much car can I afford on my monthly budget?
Use the 20/4/10 rule: 20% down payment, no longer than a 4-year loan, and total car expenses under 10% of gross income. If you can budget $500/month for a payment, you can typically afford a $22,000-$25,000 vehicle with a reasonable rate and term.
What percentage of income should a car payment be?
Financial advisors recommend keeping your car payment under 10-15% of your monthly take-home pay. Total transportation costs including insurance, gas, and maintenance should stay under 20% of take-home pay.
Does a longer loan term let me afford a more expensive car?
A longer term lowers the monthly payment but increases total interest paid significantly. A 72-month loan costs thousands more in interest than a 48-month loan and you risk being underwater on the loan for years.

You might also need

Fuel Cost Calculator

Calculate fuel cost for a trip or commute. Compare gas vs EV costs side by side.

EV vs Gas Savings Calculator

Compare total cost of owning an electric vehicle vs gas car. See fuel, maintenance, and total savings over 5-10 years.

Car Depreciation Calculator

Estimate your car's current value based on age and depreciation curve. See year-by-year value decline.