Car Affordability Calculator (2026)
Car price you can afford
$27,124
$29,251 out the door, with $500 a month for 60 months.
- Car price
- $27,123.58
- Sales tax at 6%
- $1,627.41
- Title, registration and doc fees
- $500.00
- Out-the-door price
- $29,250.99
- Loan amount
- $25,250.99
- Down payment and trade-in
- $4,000.00
A $500 monthly payment at 7% APR for 60 months repays a loan of about $25,251. With $4,000 down, 6% sales tax and $500 in fees, that buys a car priced up to about $27,124, or $29,251 out the door.
By Matt Rum. Checked against federal consumer guides on .
What changes the price you can afford
- Monthly payment
- Each extra $50 a month at 7% for 60 months adds about $2,525 of loan.
- Loan length
- The same $500 a month buys about $23,000 over 48 months and $34,555 over 84 months, but the longer loan costs far more interest and can leave you owing more than the car is worth.
- Sales tax and fees
- They come out of the same budget. At 6% tax, every $1,000 of car costs $1,060 before fees.
- Down payment and trade-in
- Every dollar down raises the out-the-door price you can pay by a dollar, without adding interest.
- Running costs
- Insurance, fuel, maintenance and registration renewals are not in the payment. Budget for them separately.
How we calculate this
Loan you can repay = payment × (1 − (1 + r)−n) ÷ r, where r is the APR ÷ 12 and n is the number of months; at 0% it is payment × n. We round down, so the payment on that loan never exceeds your budget.
Out-the-door price = loan + down payment. Car price = (out-the-door price − fees) ÷ (1 + tax rate), adjusted by a cent so price + tax + fees still fits after the tax is rounded to the cent.
The estimate taxes the full price. Many states tax only the price minus a trade-in, so with a trade-in you may afford a little more. The full method is on our methodology page.
Sources
- CFPB worksheet: Deciding which car and car loan you can afford (10–15% of take-home pay for transportation) (consumerfinance.gov), checked Nov 10, 2026
- CFPB: How should I decide how much I can afford to borrow for an auto loan? (consumerfinance.gov), checked Nov 10, 2026
- Regulation Z, Appendix H: H-11 installment loan sample ($5,000, 12%, 24 months) (consumerfinance.gov), checked Nov 10, 2026
Car affordability: common questions
How much car can I afford on my salary?
A CFPB worksheet suggests setting aside 10 to 15 percent of your take-home pay for all transportation. Subtract insurance, fuel and upkeep from that, and what is left is the car payment you can afford. Choose "My income" in the calculator to do this.
Should I use the monthly payment or the total price?
Negotiate the total price. A dealer can hit any monthly payment by stretching the loan, which raises what you pay overall. Use this calculator to find a price ceiling, then shop on price.
Does the calculator include sales tax?
Yes. It subtracts title, registration and doc fees, then the sales tax on the car's price, so the result is the sticker price you can aim for. Pick your state to fill in its rate and fees.
Why is my state's tax rate an estimate?
Local sales taxes and caps differ by city and county. We fill in the effective rate on a $30,000 car at the state's lowest local rate. Your state's sales tax calculator has the figure for your city.