Car Payment Calculator
Find your monthly car payment, then flip it around: enter the payment you can afford and see the maximum car price. Free and instant.
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1. Monthly payment for a car price
2. How much car can I afford?
About the Car Payment Calculator
This car payment calculator answers two questions in one place. First, what will I pay each month for a car at a given price, down payment, APR and term. Second, how much car can I afford if I already know my monthly budget. The second part works backwards from your payment using the loan formula and also checks it against the popular 20/4/10 rule.
For trade-ins, sales tax and fees use the auto loan calculator. To see what refinancing could save, try the car refinance calculator.
How to use it
- In part 1, enter the car price, down payment, APR and term to see the monthly payment.
- In part 2, enter your gross monthly income and the maximum payment you are comfortable with.
- Press Calculate to see the monthly payment and the maximum car price you can afford.
- Compare with the 20/4/10 guideline shown under the result.
The 20/4/10 rule for buying a car
A common guideline for car affordability is 20/4/10: put at least 20 % down, finance for no more than 4 years, and keep total car costs (payment, insurance and fuel) under 10 % of your gross monthly income. It is a rule of thumb, not a law, but it keeps you from being "car poor". This calculator compares your payment with 10 % of income.
Example
| Item | Value |
|---|---|
| Car price | $30,000 |
| Down payment | $4,000 |
| APR / term | 6.9 % / 60 months |
| Monthly payment | about $514 |
| Total interest | about $4,800 |
Frequently asked questions
How is a monthly car payment calculated?
Payment = P × [i(1+i)^n] ÷ [(1+i)^n − 1], where P is the amount financed (price minus down payment), i is APR ÷ 12 and n is the number of months.
How much car can I afford on my salary?
A common guideline keeps total car costs near 10 % of gross monthly income. Enter your income and budget in part 2 to see the maximum price.
What monthly car payment is reasonable?
Many financial planners suggest keeping the payment at or below about 10 to 15 % of take-home pay, with insurance and fuel on top. Your other debts matter too.
Does the car payment include insurance and taxes?
No. The loan payment covers principal and interest. Insurance, registration, fuel and maintenance are extra, and sales tax is added to the amount financed if you roll it into the loan.
How can I lower my car payment?
Raise the down payment, choose a cheaper car, shop for a lower APR, or lengthen the term (which lowers the payment but increases total interest).
Last reviewed: November 2026. Estimates only, not financial advice. Confirm the final terms with your lender.
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