What does this tool do?
Lenders size a car loan from the payment you can sustain, the term and the APR. This calculator solves for the loan principal that a monthly budget supports, then adds your down payment to estimate the car price.
The Formula
Loan = Payment × (1 − (1 + r)^−n) ÷ r; Car price = Loan + Down paymentFrequently Asked Questions
Should I use a longer term to afford more car?
A longer term lowers the payment but usually raises total interest and leaves you owing more than the car is worth for longer. Compare the total cost, not just the monthly figure.
What about a trade-in?
Add the trade-in value to the down payment field. If you still owe money on the trade-in, subtract that balance first.