Vehicle Loan Affordability Calculator

Find out how much car you can afford based on your income, existing debt, and loan terms. Uses the debt-to-income guideline to recommend a safe maximum vehicle price.

Monthly Gross Income ($)

Existing Monthly Debt ($)

Down Payment ($)

Trade-in Value ($)

Interest Rate (% APR)

Loan Term (months)

Max Car Payment DTI (%)

'Does a trade-in help reduce my loan amount?', 'answer' => 'Yes — trade-in value directly reduces the amount you need to finance. A $5,000 trade-in on a $30,000 car means you only finance $25,000 (minus any additional down payment). In most US states, trade-in value also reduces the taxable purchase price, saving additional money on sales tax. Get multiple trade-in offers (CarMax, Carvana, dealers) to maximize your trade-in value.'], ]" />

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The 20/4/10 Rule

20% Down

Avoid negative equity. A $35,000 car needs $7,000 down minimum.

4-Year Loan Max

48 months keeps interest manageable and matches depreciation better.

10% of Income

Payment + insurance should not exceed 10% of gross monthly income.

New vs Used Cost

A 2-year old car with 24,000 miles typically costs 25–35% less than new while retaining most useful life. On a $40,000 new car vs $28,000 used equivalent:

Savings on purchase:$12,000

Lower insurance:~$600/yr

Less interest paid:~$1,800