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Car Affordability Calculator

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Use your monthly budget to estimate your maximum car price with our car affordability calculator. Adjust down payment, trade-in value, loan term and APR to see how changes affect how much car you afford.

Let’s estimate your monthly car loan payment

You can afford cars up to



You can afford cars up to


Down Payment


Trade-in value


Estimated sales tax (0.00%)


Other fees*

not included

Total loan amount


Total interest paid (over life of loan)


Total loan & interest paid


*Title and other fees and incentives are not included in this calculation, which is an estimate only. Monthly payment estimates are for informational purpose and do not represent a financing offer from Way.com. Other taxes may apply.

How to use the car affordability calculator

To use the car affordability calculator, you should input the following data for getting the most accurate results.

  1. Monthly car payment: This should be the estimate amount that you can afford to pay for your loan on a monthly basis.
  2. Loan term or Length of the loan: The period (in months) for which you want to take on the loan. The longer your term, the lower will be your monthly payment. However, you may pay a higher amount as interest charges for a long-term loan.
  3. APR: Figure out an interest rate you are most comfortable with. Compare the different car payment amounts you may have to pay with different rates by inputting them into the auto loan rate calculator. Then calculate the respective APR.
  4. APR = (Periodic Interest Rate * 365 Days) * 100

  5. Sales tax: Most states in the United States impose sales tax on automobile purchases. Input the sales tax of the state where you wish to do the purchase.
  6. Down payment: The amount paid initially when you buy a car with a car loan is referred to as the down payment. It is the amount you pay out of your savings or wages. The loan amount granted by your bank or non-banking financial company is the amount remaining after your down payment (NBFC).
  7. Trade-in value: In exchange for your old car, a car dealer will offer you a trade-in value toward the purchase price of a new or used car. This is important if you seeking loan for an old car.

Once you have gathered the required information, all you got to do is enter them in the respective slots and you’ll get an immediate breakdown of how much you could possibly afford for your car.

How to determine how much car you can afford

Unfortunately, there is no exact formula for determining how much you can afford. But make sure that your new-car payment should be no more than 15% of your monthly take-home earnings.

It should not be more than 10% if you are leasing or purchasing a used car. It is smart to look for a vehicle with a payment of less than 10%-15% as you might know that the payment isn't the sum total of what you'll be spending.

You must consider the costs of fuel and insurance, which many individuals ignore. You must estimate that these charges will amount to an additional 7% of your take-home earnings. So, all total, you're looking at a budget that's no more than 20% of your monthly take-home pay.

While the 10%-15% rule may not be applicable to everyone, it is a solid starting point for determining a goal price that will not leave you rushing to pay your bills every month. In short you got to:

  1. Be aware of your budget
  2. Calculate your fuel and insurance expenses
  3. Study your car purchasing habits

Estimated monthly car payment based on salary

Based on your present wage, you can estimate how much automobile you can buy, but using your real take-home pay number will give you a more precise picture of how much you can actually spend. If you just have a rough idea of your annual earnings, use the table below to generate a ballpark figure for your monthly auto payment.

Annual salary (pre-tax) Estimated monthly car payment limit
$25,000 $208 per month
$50,000 $416 per month
$75,000 $625 per month
$100,000 $833 per month
$125,000 $1,042 per month
$150,000 $1,250 per month

Frequently Asked Questions

How much money should I put down on a car?

In general, you should try to put down at least 20% of the buying price of a new car. Try to put down at least 10% on a used car. If you are unable to put down the necessary amount, put down as much as you can without spending all of your savings or emergency reserves.

How much should your car cost be compared to your salary?

Auto payments and related expenses should be limited to 10%-15% of monthly income. Buyers should budget for additional costs like as repairs, registration, and insurance in addition to the purchase price.

How much should I spend on a car if I make $100000?

It's simple: You should spend no more than 10% of your income on an automobile. If you make $100000 annually, you shouldn’t spend more than 10% of $100000.

What car can I afford with 60k salary?

It's usually recommended that you buy a car that costs no more than 35% of your gross yearly salary, which means that if you make $60,000 per year, you may afford a new automobile for $21,000 or less.