Car Affordability Calculator

Calculate the maximum car price you can afford. Uses the 20% rule with loan terms, insurance, and total cost of ownership estimates.

Monthly Income (before tax) ($)

Monthly Expenses (excluding car) ($)

Credit Score Range

Estimated APR: 6%

Down Payment ($)

Preferred Loan Term

Recommended Max Car Price

$54,726

$1,000.00/mo · 6% APR · 60 months

Monthly Income Allocation (20% Rule)

Car Payment

$1,000.00

Expenses

$3,000

Remaining

$1,000

Conservative

15% of income rule -- safe financial cushion

Max Car Price

$41,794

Monthly Payment$750.00

Loan Amount$38,794

Moderate

Recommended

20% of income rule -- standard recommendation

Max Car Price

$54,726

Monthly Payment$1,000.00

Loan Amount$51,726

Stretch

25% of income rule -- tight budget

Max Car Price

$67,657

Monthly Payment$1,250.00

Loan Amount$64,657

Total Cost of Ownership (Monthly Estimate)

Loan Payment$1,000.00

Insurance (est.)$180.00

Fuel (est.)$150.00

Maintenance (est.)$50.00

Registration (est.)$12.50

Total Monthly Ownership Cost$1,392.50

That is 27.9% of your monthly income

Down Payment Comparison

Down Payment	Max Car Price	Loan Amount	Total Interest	Total Paid
$0	$51,726	$51,726	$8,274	$60,000
$2,000	$53,726	$51,726	$8,274	$62,000
$5,000	$56,726	$51,726	$8,274	$65,000
$10,000	$61,726	$51,726	$8,274	$70,000
$15,000	$66,726	$51,726	$8,274	$75,000
$20,000	$71,726	$51,726	$8,274	$80,000

A larger down payment reduces your loan amount and total interest paid. Experts recommend putting at least 20% down on a new car and 10% on a used car.

New vs. Used Car Recommendation

Recommend: New Car

New Car

Insurance/mo$180

Maintenance/mo$50

Total Monthly$1,380.00

Pros:

+ Latest safety features

+ Manufacturer warranty

+ Lower maintenance initially

+ Better financing rates

Cons:

- Higher price

- Rapid depreciation (20-30% in year 1)

- Higher insurance

- Higher registration fees

Used Car (3-5 years old)

Insurance/mo$130

Maintenance/mo$100

Total Monthly$1,380.00

Pros:

+ Lower purchase price

+ Slower depreciation

+ Lower insurance costs

+ More car for the money

Cons:

- Higher maintenance costs

- Shorter/no warranty

- Higher interest rates possible

- Unknown history risk

With a budget of $54,726, you have room for a new car. You will benefit from warranty, latest safety features, and potentially better financing rates.

Disclaimer: This calculator provides estimates for informational purposes only. Actual interest rates depend on your specific credit profile, lender, and market conditions. Insurance, fuel, and maintenance costs are national averages and vary by location, driving habits, and vehicle model. The 20% income rule is a general guideline. Consult with a financial advisor for personalized recommendations.

How to Use Car Affordability Calculator

1Enter your monthly income and expenses
2Set your down payment and credit score range
3Choose your preferred loan term
4Review maximum affordable price and total costs

Frequently Asked Questions

What percentage of income should go to a car payment?▾

Financial experts recommend keeping total transportation costs (payment, insurance, fuel, maintenance) under 20% of your monthly take-home pay.

How does credit score affect car loan rates?▾

Excellent credit (750+) can get rates as low as 3-5%, while poor credit (below 600) may face rates of 15-20% or higher, significantly increasing total cost.

Should I buy new or used?▾

Used cars are typically better value since new cars depreciate 20-30% in the first year. A 2-3 year old certified pre-owned vehicle often offers the best balance of reliability and value.

About Car Affordability Calculator

Calculate the maximum car price you can afford. Uses the 20% rule with loan terms, insurance, and total cost of ownership estimates.

NexTool's Car Affordability Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.