Car Affordability Calculator

CAR AFFORDABILITY CALCULATOR

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CAR AFFORDABILITY CALCULATOR

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Falling for the perfect car only to realize it’s out of reach? We’ve all been there. That’s why our Car Affordability Calculator helps you confidently determine what vehicle price aligns with your financial comfort zone—before you start shopping.

Just enter your ideal monthly payment, loan term, credit score, down payment, trade-in value, and sales tax rate. Instantly, you’ll see the maximum car price that fits your budget—so you can focus on cars that are financially realistic, not just emotionally tempting.

As your trusted auto brokers in Los Angeles, we’ve seen too many buyers overwhelmed by high monthly payments after choosing vehicles beyond their means. Our goal is to help you stay in control. This calculator sets clear limits based on your input, and our experts take it from there—finding great new or used cars that match your budget, not break it. When you understand your numbers, no salesperson can steer you off track.

Disclaimer: This tool provides general estimates and assumes typical lending criteria. Actual affordability will depend on multiple personal factors such as your debt-to-income ratio, employment history, existing obligations, insurance, and maintenance costs. Use this calculator as a guide—not a loan guarantee.

Target Monthly Payment:* Loan Term:* Are you looking for a new or used car?*

New Used

Credit Score:* Down Payment:* Trade-In Value: Sales Tax Rate (%):*

How Our Affordability Calculator Determines What You Can Really Spend

Too often, car buyers step into dealerships unsure of their actual budget—and that’s exactly when sales tactics hit hardest. Our affordability calculator flips the script by helping you begin with your ideal monthly payment and calculate backward to reveal how much car you can genuinely afford.

Let’s walk through a realistic example using a $525 monthly payment target:

Step 1: Estimate the Loan Amount You Can Secure
Suppose you have a solid credit score in the 690–749 range. For a used vehicle, your estimated APR might land around 7.2%, or approximately 0.6% monthly interest. With a 60-month loan term, that $525 monthly budget qualifies you for a loan of about $26,200.

That’s the approximate amount a lender would approve based on your payment comfort zone.
Step 2: Add Your Available Cash and Trade-In
Now include your upfront contribution. Say you’ve saved $2,500 for a down payment and have a trade-in valued at $3,200. Adding those to your loan gives:

$26,200 + $2,500 + $3,200 = $31,900

This total reflects your vehicle purchasing power before tax.
Step 3: Adjust for Local Sales Tax
If you’re buying in Los Angeles, where sales tax is 10.25%, you’ll need to factor that in. To find the vehicle price before taxes, divide your pre-tax total by 1.1025:

$31,900 ÷ 1.1025 ≈ $28,935
Step 4: Your Ideal Vehicle Price
With all things considered, you can comfortably shop for a vehicle priced around $28,935. Choosing something more expensive would either push your monthly payment beyond your target or require a bigger down payment.