Free Car Loan Affordability calculator with clear step-by-step results.
Runs the loan formula backwards: instead of asking what a car costs per month, it asks how much car a given monthly payment buys. The present value of your payment stream is the maximum loan, and adding your down payment and trade-in equity gives the price ceiling to shop against.
Maximum loan
Loan = payment x (1 - (1 + r)^-n) / r
Price ceiling
Price = maximum loan + down payment + trade-in equity
Affordability also depends on insurance, fuel, maintenance and your wider debt-to-income position. This shows loan capacity only, not whether the purchase is prudent.
No. Those are usually financed on top of the vehicle price, so subtract roughly 8-10% from the price ceiling if you intend to roll them into the loan.
It raises the ceiling but sharply increases total interest and the period you spend in negative equity. Sixty months is a common practical limit for a used car.