Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Max car price
$30,776
Max loan amount
$27,776
Max monthly payment
$550
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One click, a permanent link with your numbers baked in.
How to use this
- 1Enter monthly gross income ($).
- 2Enter % of income for car payment (%).
- 3Enter down payment ($).
- 4Enter apr (%).
- 5Enter loan term (months).
- 6Read your max car price on the right — it updates as you type.
- 7Hit Share to keep the scenario or send it to someone.
About this calculator
A common rule caps total vehicle payment at 10-15% of gross monthly income, and this calculator turns that payment budget into a maximum loan amount using your interest rate and term, then adds your down payment to get a target purchase price.
Worked example
Using the values the calculator loads with:
Inputs
- Monthly gross income: 5500 $
- % of income for car payment: 10 %
- Down payment: 3000 $
- APR: 7 %
- Loan term: 60 months
Results
- Max car price: $30,776
- Max loan amount: $27,776
- Max monthly payment: $550
What each field means
Inputs
- Monthly gross income ($)
- The monthly gross income used in the calculation, measured in $. Starts at 5500 $ so you have a working example on load.
- % of income for car payment (%)
- The % of income for car payment used in the calculation, measured in %. Starts at 10 % so you have a working example on load. Accepted range: 5–20 %.
- Down payment ($)
- The down payment used in the calculation, measured in $. Starts at 3000 $ so you have a working example on load.
- APR (%)
- The apr used in the calculation, measured in %. Starts at 7 % so you have a working example on load. Accepted range: 0–25 %.
- Loan term (months)
- The loan term used in the calculation, measured in months. Starts at 60 months so you have a working example on load. Accepted range: 12–96 months.
Results
- Max car price
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Max loan amount
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Max monthly payment
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How much car can I afford?
On $5,500 monthly income at a 10% payment budget ($550/month), a $3,000 down payment, 7% APR, and 60-month term, you can afford roughly a $30,000 vehicle.
Should the 10-15% rule include insurance and gas?
No, that guideline is for the loan payment alone — many financial planners suggest a broader 20% cap on total vehicle costs including insurance, fuel, and maintenance combined.
Does a longer loan term let me afford more car?
Yes on paper, but longer terms (72-84 months) mean more total interest and higher risk of being underwater on the loan since the car depreciates faster than the balance drops early on.
Should I use gross or net income for the budget percentage?
Gross income is the common convention for lender guidelines, but budgeting off net (take-home) pay gives a more conservative, realistic affordability check.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). How Much Car Can I Afford?. Retrieved from https://www.revenuelab.fyi/toolbox/how-much-car-can-i-afford
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/how-much-car-can-i-afford" target="_blank" rel="noopener">How Much Car Can I Afford? — RevenueLab</a> (2026).</p>
Source: [How Much Car Can I Afford? — RevenueLab](https://www.revenuelab.fyi/toolbox/how-much-car-can-i-afford) (2026).