Car Affordability & Ownership Budget Calculator
Solve the vehicle price your explicit budget can support after savings, insurance, fuel, maintenance and financing charges.
Your inputs
Use consistent units and periods. Defaults are examples.
Your result
Check the assumptions below before relying on a result.
Formula and method
Total monthly car budget = min(entered car cap, max(0, take-home income − non-car expenses − protected savings)). Payment capacity = max(0, car budget − insurance − fuel − maintenance − annual registration/12). Loan capacity is the present value of that payment at the entered monthly rate and term. Vehicle price limit = (loan capacity + cash down + net trade equity − fees)/(1+tax rate). Infeasible running costs or closing funds produce no price result.
Worked example
At zero interest, a 500 monthly car cap with 200 running costs leaves 300 for debt repayment. Over 36 months it supports 10,800 of principal. With 2,000 cash down, no trade, 800 in fees and zero tax, the vehicle price limit is 12,000. The out-the-door amount is 12,800 and the loan is 10,800.
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Open calculator ↗How to use this result
- Set aside non-car expenses and your protected monthly savings first.
- Choose a total car spending cap and reserve all operating costs.
- Enter actual offered loan terms, available down payment and net trade equity.
- Review the price limit and term sensitivity together; a longer term also changes total interest.
- Recheck the full closing deal in the trade-in tool before signing.
Questions about this calculation
Why is there no universal 10% or 20% rule?
Your household obligations and running costs determine this scenario. The tool uses your explicit cap instead of prescribing a ratio.
Can the result support a cash-only purchase?
Yes, if the running costs fit and cash plus net trade equity cover the purchase and fees. The financed amount can be zero.
What does Not defined mean for the price limit?
The entered running costs or closing funding do not fit the constraints. The result does not mean a free vehicle solves those costs.