DayCents

Loans

Car Affordability Calculator

Work backward from a payment you can actually live with. Enter your target monthly payment, down payment, rate, and loan term to see the total car price it buys — and how much of it is interest.

A common guideline keeps total car costs under 15–20% of take-home pay.

Car you can afford

$25,726

Sticker price your payment and down payment support.

Loan amount
$22,726
Down payment
$3,000
Total interest
$4,274

What the financing costs over the loan.

Total you'll pay
$30,000

How this calculator works

The affordable loan is the present value of your monthly payments at the given APR and term — the balance those payments can pay off. Add your down payment to get the car price. Total interest is the sum of payments minus the loan amount.

This estimates the financing only. Budget separately for sales tax, registration, insurance, fuel, and maintenance, which add meaningfully to the true cost of owning — see our Auto Loan calculator for a full payment breakdown.

Try an example

Frequently asked questions

How much car can I afford on my salary?

A common guideline keeps your total monthly car costs — payment plus insurance, gas, and maintenance — under 15–20% of your take-home pay. Decide the payment that fits that budget first, then this calculator shows the car price it supports at your rate and term.

Does a longer loan term let me afford more car?

On paper, yes — stretching to 72 or 84 months lowers the monthly payment, so the same payment 'buys' a pricier car. But you pay much more interest and risk owing more than the car is worth (being 'underwater'). Shorter terms are cheaper and safer.

How big a down payment should I make?

Enough to avoid being underwater as the car depreciates — often 10–20% for a new car. A bigger down payment shrinks the loan, lowers interest, and can improve your rate. Your trade-in value counts toward it.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.