Car Affordability Calculator

Use our free online Car Affordability Calculator to calculate how much you can spend on a car. Additionally, the calculator takes into account 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 entered these inputs, click 'Calculate', and the results will appear below.

Reference

To calculate the loan amount we use the following formula:

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

Where:

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.