Estimate how much car you can afford based on income or salary. Our car loan affordability calculator includes sales tax, DMV, and Dealer DOC fees.
Estimate the vehicle purchase price based on income. See the new car price that fits within your salary.
To Estimate the vehicle purchase price you can afford, enter your annual salary, select your State and hypothetical interest rate. Our Advanced vehicle affordability calculator includes average dealer fees, average state fees, and calculates the sales tax based on each state's handling of new car rebates and your trade-in value.
Car affordability is a multifaceted concept influenced by several critical factors. Your credit score plays a pivotal role, determining the interest rate you receive on a car loan and, consequently, the overall cost of your vehicle. Making a substantial down payment upfront can significantly reduce your monthly payments and the total interest paid over the life of the loan. Carefully choosing the loan term and interest rate ensures that your monthly budget aligns with your financial goals. Additionally, state taxes and fees vary, making it essential to account for regional differences when budgeting for a car purchase. Beyond the purchase price and loan payments, considering total ownership costs, including insurance, fuel, and maintenance expenses, is crucial to ensure long-term affordability. A comprehensive understanding of these factors empowers you to make informed decisions and find a car that fits comfortably within your budget while meeting your transportation needs.
Your credit score plays a crucial role in determining your car affordability. Lenders use your credit score to assess your creditworthiness, and it directly impacts the interest rate you'll receive on a car loan. A higher credit score generally qualifies you for lower interest rates, which can significantly reduce your monthly payments and the overall cost of your car over the loan term. Maintaining a good credit score by making on-time payments and managing your debts responsibly can help you secure a more affordable car loan. With our car affordability calculator you can input your own interest rate, or select a credit rating and the national average interest rate for that credit rating.
Making a substantial down payment is a smart financial move when it comes to car affordability. By putting more money down upfront, you can reduce the amount you need to finance through a loan. This not only lowers your monthly payments but also decreases the total interest paid over the life of the loan. A larger down payment can also help you qualify for better loan terms and potentially afford a higher-priced vehicle within your budget. Saving up for a substantial down payment demonstrates your commitment to the purchase and can make lenders more willing to offer favorable financing terms.
The loan term and interest rate you choose for your car loan are critical factors in determining your car's affordability. A longer loan term typically results in lower monthly payments but may lead to higher overall interest costs. Conversely, a shorter loan term may have higher monthly payments but lower total interest expenses. Our car affordability calculator displays maximum sales prices for 48, 54, 60, 66, 72, 75, and 84 month car loan repayment terms. Interest rates also significantly impact affordability, with lower rates reducing the cost of borrowing. It's essential to strike a balance between loan term and interest rate that aligns with your budget and financial goals to ensure you can comfortably manage your car payments.
State taxes and fees can vary significantly from one location to another, impacting the overall cost of buying and owning a car. These costs typically include sales tax, registration fees, and sometimes additional local taxes or fees. When estimating car affordability, it's essential to consider these state-specific expenses, as they can significantly affect your budget. Our car affordability calculator accounts for these regional variations so you can make a more accurate assessment of how much car you can comfortably afford in your area.
Car affordability goes beyond the purchase price and loan payments. Total ownership costs encompass expenses such as insurance, fuel, maintenance, and potential repair costs. It's crucial to factor in these ongoing expenses when budgeting for a car to ensure you can sustainably manage the financial commitment. Additionally, considering the long-term costs of ownership can help you make a more informed decision about the type of vehicle that fits your budget, as some cars may have higher maintenance or fuel costs than others. Evaluating total ownership costs allows you to make a more comprehensive and financially responsible choice when purchasing a car.
Car loan payments below are based on a 75 month term, and the national average new car rate of 5% for credit scores between .