Car Affordability Calculator

Monthly Income (before tax) ($)

Monthly Expenses (excluding car) ($)

Credit Score Range

Estimated APR: 6%

Down Payment ($)

Preferred Loan Term

Recommended Max Car Price

$54,726

$1,000.00/mo · 6% APR · 60 months

Monthly Income Allocation (20% Rule)

Car Payment

$1,000.00

Expenses

$3,000

Remaining

$1,000

Conservative

15% of income rule -- safe financial cushion

Max Car Price

$41,794

Monthly Payment$750.00

Loan Amount$38,794

Moderate

Recommended

20% of income rule -- standard recommendation

Max Car Price

$54,726

Monthly Payment$1,000.00

Loan Amount$51,726

Stretch

25% of income rule -- tight budget

Max Car Price

$67,657

Monthly Payment$1,250.00

Loan Amount$64,657

Total Cost of Ownership (Monthly Estimate)

Loan Payment$1,000.00

Insurance (est.)$180.00

Fuel (est.)$150.00

Maintenance (est.)$50.00

Registration (est.)$12.50

Total Monthly Ownership Cost$1,392.50

That is 27.9% of your monthly income

Down Payment Comparison

Down Payment	Max Car Price	Loan Amount	Total Interest	Total Paid
$0	$51,726	$51,726	$8,274	$60,000
$2,000	$53,726	$51,726	$8,274	$62,000
$5,000	$56,726	$51,726	$8,274	$65,000
$10,000	$61,726	$51,726	$8,274	$70,000
$15,000	$66,726	$51,726	$8,274	$75,000
$20,000	$71,726	$51,726	$8,274	$80,000

A larger down payment reduces your loan amount and total interest paid. Experts recommend putting at least 20% down on a new car and 10% on a used car.

New vs. Used Car Recommendation

Recommend: New Car

New Car

Insurance/mo$180

Maintenance/mo$50

Total Monthly$1,380.00

Pros:

+ Latest safety features

+ Manufacturer warranty

+ Lower maintenance initially

+ Better financing rates

Cons:

- Higher price

- Rapid depreciation (20-30% in year 1)

- Higher insurance

- Higher registration fees

Used Car (3-5 years old)

Insurance/mo$130

Maintenance/mo$100

Total Monthly$1,380.00

Pros:

+ Lower purchase price

+ Slower depreciation

+ Lower insurance costs

+ More car for the money

Cons:

- Higher maintenance costs

- Shorter/no warranty

- Higher interest rates possible

- Unknown history risk

With a budget of $54,726, you have room for a new car. You will benefit from warranty, latest safety features, and potentially better financing rates.

Disclaimer: This calculator provides estimates for informational purposes only. Actual interest rates depend on your specific credit profile, lender, and market conditions. Insurance, fuel, and maintenance costs are national averages and vary by location, driving habits, and vehicle model. The 20% income rule is a general guideline. Consult with a financial advisor for personalized recommendations.

Monthly Income (before tax) ($)

Monthly Expenses (excluding car) ($)

Credit Score Range

Estimated APR: 6%

Down Payment ($)

Preferred Loan Term

Recommended Max Car Price

$54,726

$1,000.00/mo · 6% APR · 60 months

Monthly Income Allocation (20% Rule)

Car Payment

$1,000.00

Expenses

$3,000

Remaining

$1,000

Conservative

15% of income rule -- safe financial cushion

Max Car Price

$41,794

Monthly Payment$750.00

Loan Amount$38,794

Moderate

Recommended

20% of income rule -- standard recommendation

Max Car Price

$54,726

Monthly Payment$1,000.00

Loan Amount$51,726

Stretch

25% of income rule -- tight budget

Max Car Price

$67,657

Monthly Payment$1,250.00

Loan Amount$64,657

Total Cost of Ownership (Monthly Estimate)

Loan Payment$1,000.00

Insurance (est.)$180.00

Fuel (est.)$150.00

Maintenance (est.)$50.00

Registration (est.)$12.50

Total Monthly Ownership Cost$1,392.50

That is 27.9% of your monthly income

Down Payment Comparison

Down Payment	Max Car Price	Loan Amount	Total Interest	Total Paid
$0	$51,726	$51,726	$8,274	$60,000
$2,000	$53,726	$51,726	$8,274	$62,000
$5,000	$56,726	$51,726	$8,274	$65,000
$10,000	$61,726	$51,726	$8,274	$70,000
$15,000	$66,726	$51,726	$8,274	$75,000
$20,000	$71,726	$51,726	$8,274	$80,000

A larger down payment reduces your loan amount and total interest paid. Experts recommend putting at least 20% down on a new car and 10% on a used car.

New vs. Used Car Recommendation

Recommend: New Car

New Car

Insurance/mo$180

Maintenance/mo$50

Total Monthly$1,380.00

Pros:

+ Latest safety features

+ Manufacturer warranty

+ Lower maintenance initially

+ Better financing rates

Cons:

- Higher price

- Rapid depreciation (20-30% in year 1)

- Higher insurance

- Higher registration fees

Used Car (3-5 years old)

Insurance/mo$130

Maintenance/mo$100

Total Monthly$1,380.00

Pros:

+ Lower purchase price

+ Slower depreciation

+ Lower insurance costs

+ More car for the money

Cons:

- Higher maintenance costs

- Shorter/no warranty

- Higher interest rates possible

- Unknown history risk

With a budget of $54,726, you have room for a new car. You will benefit from warranty, latest safety features, and potentially better financing rates.