Car Affordability Calculator
What car a payment supports, with running costs shown alongside. Fuel, insurance, tax and servicing typically add most of the loan payment again, which is the part the showroom conversation leaves out.
Also called: how much car can i afford, car budget calculator.
$676,148.27 on a payment of $10,000.00 a month. Running costs add about $4,507.66 a month on top, so the true monthly cost is $14,507.66.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
The affordable payment sets the loan, the loan plus deposit and trade-in sets the price. The number worth attention is the second line: running a car costs roughly eight to twelve percent of its value a year in fuel, insurance, tax and servicing, so a payment you can just afford becomes a total cost you cannot. Stretching the term lowers the payment and raises the interest, and on a depreciating asset it also raises the time spent owing more than the car is worth.
price = the loan an affordable payment supports, plus the deposit and trade-in- E
- Affordable payment (currency)
- D
- Down payment (currency)
- T
- Trade-in (currency)
Method and limits
What it assumes
- Running costs as a share of price, which varies with how far you drive.
What it deliberately does not model
- Depreciation is the largest cost of owning a car and is not included here.
- Insurance premiums depend on driver and location far more than on price.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Is a longer loan a good idea?
- Rarely. It lowers the payment and raises the interest, and because the car depreciates faster than a long loan amortises, it extends the period where you owe more than the car is worth.