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Auto Affordability Calculator

Updated

We estimate conservative, moderate, and stretch vehicle prices based on a percentage of your gross monthly income.

A common rule is to keep your auto payment at or below 10–15% of your gross monthly income; 20% is a stretch. The right number for you also depends on other debts, savings goals, insurance, fuel, and maintenance costs.

Estimate only. Estimate only. Not a loan offer, lender quote, dealer quote, lease agreement, retail installment sales contract, DMV estimate, or financial advice. Actual rates, payments, taxes, fees, incentives, residual values, insurance, fuel, and maintenance costs may vary.

conservative (10.00% of income)

$41,403.01

  • Max monthly payment: $800.00
  • Estimated all-in monthly: $800.00
  • Estimated amount financed: $40,887.19

moderate (15.00% of income)

$60,689.31

  • Max monthly payment: $1,200.00
  • Estimated all-in monthly: $1,200.00
  • Estimated amount financed: $61,330.67

stretch (20.00% of income)

$79,975.60

  • Max monthly payment: $1,600.00
  • Estimated all-in monthly: $1,600.00
  • Estimated amount financed: $81,774.14

What another $50/month buys

$2,411

more vehicle for every extra $50 of monthly budget, at your rate and term.

That is $2,555 of extra financing; the gap is the sales tax the pricier car adds, which gets financed too.

Note

Tiers are estimates

Lender approval depends on credit, debt, employment, and income verification.

Assumptions usedv2026-06-18
  • APR6.50%
  • Term60 months
  • Conservative / Moderate / Stretch10% / 15% / 20% of gross monthly income

How this is calculated

We compute your maximum monthly payment as a percent of gross monthly income (10% conservative, 15% moderate, 20% stretched). We then binary-search the highest vehicle price that fits your budget given APR, term, taxes, and fees.

“What another $50/month buys” inverts the payment formula: it solves for the principal a $50 payment supports at your rate and term, then removes the sales tax that rides on the higher price, since that tax is financed too. It is the same math the tiers use, expressed per slice of budget rather than per tier.

For a fuller approach, read how much car can I afford.

Frequently asked questions

What payment-to-income ratio is reasonable?
A common rule is 10% of gross monthly income for the auto payment. 15% is moderate and 20% is stretched.

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