This calculator is designed to give you some idea about how much you could afford to spend on a new car.
The first step is to enter the details of how much you could afford each month in payments, and the proposed car loan variables in the fields above:
- Max Payment/mo - The maximum you could afford to pay every month on your loan
- Down Payment - The amount of money that you will be putting down yourself on the car
- Trade In - If you will be trading in your current car, put it's expected value here
- Owed on Trade - If you will be trading in and owe money on that vehicle, enter the amount here
- Interest Rate - The interest rate that you will pay on the loan
- Sales tax - The amount of sales tax levied in your area
- Term (Months) - The number of months that your loan will run over, typical terms for a car loan are 36, 48 or 60 months
Once you enter your details click "Calculate" and the calculator will provide your results.
Understanding the Results - Affordability Summary
This table provides four pieces of information:
- Spending Limit - This is how much you could afford to spend on a car, the amount includes your down payment and trade in
- Loan Amount - The amount that could be borrowed given your maximum repayments, interest rate and loan term
- Down Payment - The amount of money you will add to the loan amount
- Trade In Value - The amount that you will get for trading in your current vehicle which is added to the spending limit
While this calculator can give you a good idea about how much you could potentially spend on a car, it is not professional advise and should not be relied upon to make your final purchasing decision. Always consider your personal financial position before borrowing money or making large purchasing decisions.