How Much Car Can I Afford? (Calculator)

Published on Apr 01, 2015 05:28 pm

How much vehicle can you afford? That’s the question you can’t ignore when shopping for a new car. Though all those options, colors and various sizes are nice, none of them will matter if you can’t make the payments. So, how much vehicle can you afford? Experts suggest your vehicle should account for no more than 20% of your take-home pay, and the down payment, interest rate and term of the loan will play a part in this calculation as well. To help you determine the right budget, use this helpful Vehicle Affordability Calculator.

Car Affordability Calculator Definitions

  • Annual interest rate – The rate of interest you will pay on the loan each year.
  • Term of the loan – This represents the duration of the loan in a period of months. The term of the loan may last for several years.

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This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from, Inc., an Experian company. © 2015, Inc. All rights reserved.

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