Car Affordability Calculator

Use our free online Car Affordability Calculator in order to calculate how much you can spend on a car. Also, the calculator uses interest rates, trade-ins, sales taxes, down payments and loan terms to create a loan amortization schedule.

All you need to enter is:

  1. The monthly payment you can afford to pay for a car loan
  2. The amount you have available for a down payment
  3. If you are trading in a car, then enter the trade-in allowance
  4. Any cash rebates (if available)
  5. The loan term in number of months
  6. The annual interest rate of your loan, expressed as a percentage
  7. The applicable sales tax percentage

Once you have keyed these inputs, press 'Calculate' and the results will appear below.

How much car can I afford?



To calculate the loan amount we use the following formula:

P = (A / Rate) × { 1 − (1 + Rate) − N }


P = The loan amount ,

A = The monthly loan payment ,

N = The number of monthly payments (for a 3 year loan N = 3 x 12 = 36) ,

Rate (monthly interest rate) = Decimal Rate / 12 , or Rate = (Annual Interest Rate / 100) / 12

You can also try this calculator to estimate how much your car will be worth after a number of years.


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