🚗 Car Affordability Calculator
How much car can you afford?
How to Use This Calculator
Enter Your Values
Input the required values in the calculator fields above. Make sure all inputs are valid numbers.
Click Calculate
Press the "Calculate" button to perform the calculation and see your results.
Review Results
Review the calculated results displayed below. Use these values for your needs.
Formula
Max Monthly Payment = (Income - Expenses) × 0.20
Max Loan Amount = Max Payment × [(1 + r)ⁿ - 1] / [r(1 + r)ⁿ]
Max Car Price = Max Loan Amount + Down Payment
Where:
• r = Monthly Interest Rate (Annual Rate ÷ 12)
• n = Number of Monthly Payments
• The 20% rule limits car payment to 20% of disposable income
Example Calculation:
If monthly income is $5,000, expenses are $3,000, down payment is $5,000, interest is 5%, and term is 60 months:
• Disposable income = $5,000 - $3,000 = $2,000
• Max monthly payment = $2,000 × 0.20 = $400
• Monthly rate = 5% ÷ 12 = 0.004167
• Max loan = $400 × [(1.004167)⁶⁰ - 1] / [0.004167(1.004167)⁶⁰] = $21,082
• Max car price = $21,082 + $5,000 = $26,082
About Car Affordability Calculator
The Car Affordability Calculator helps you determine how much car you can afford based on your income, expenses, and financial situation. Using the 20% rule (limiting car payment to 20% of disposable income), this calculator estimates the maximum car price you can afford while maintaining a healthy budget. It considers your down payment, interest rate, and loan term to provide a realistic assessment of what you can comfortably afford without straining your finances.
When to Use This Calculator
- Car Shopping: Determine your budget before visiting dealerships
- Financial Planning: Plan how much to save for a down payment
- Loan Planning: Understand how different loan terms affect affordability
- Budget Review: Evaluate if a car purchase fits your financial situation
- Comparison Shopping: Compare different car prices against your budget
Why Use Our Calculator?
- ✅ Instant Results: Get accurate calculations immediately
- ✅ Easy to Use: Simple interface for all skill levels
- ✅ 100% Free: No registration or payment required
- ✅ Mobile Friendly: Works on all devices
- ✅ Accurate: Precise mathematical calculations
Tips for Best Results
- Double-Check Inputs: Verify all values before calculating
- Use Valid Numbers: Ensure inputs are valid numbers
- Review Results: Check results for reasonableness
- Clear and Retry: Clear inputs if you need to recalculate
Frequently Asked Questions
What does this calculator do?
This calculator helps you calculate car affordability calculator values quickly and accurately. Simply enter your inputs and get instant results.
How accurate is this calculator?
This calculator provides accurate results based on standard mathematical formulas. Results are precise for the values you input.
Can I use this calculator on mobile devices?
Yes, this calculator is fully responsive and works on all devices including smartphones and tablets.
Is this calculator free to use?
Yes, this calculator is completely free to use. No registration or payment required.
What if I get an error?
If you encounter an error, make sure all input values are valid numbers and within acceptable ranges. Check the input fields and try again.