How much car can I afford based on my salary?

A general rule: your car payment should not exceed 15-20% of your monthly take-home pay. For example, with $3,000 monthly take-home, your max payment should be $450-600. Use our calculator to work backwards from your budget and discover your maximum vehicle price including down payment and trade-in equity.

What is the out-the-door price?

The out-the-door price is the total maximum vehicle price you can afford after considering your monthly payment budget, down payment, trade-in equity, interest rate, and loan term. It represents the complete purchasing power available to you.

How does trade-in equity affect affordability?

Trade-in equity is your trade vehicle's value minus what you owe on it. Positive equity increases the vehicle price you can afford by that amount. Negative equity (owing more than the car is worth) decreases your affordability by adding to your loan amount. For example, +$3,000 equity lets you afford a $3,000 more expensive car, while -$3,000 equity reduces your buying power.

What if I have negative equity in my current car?

Negative equity (being upside down on your loan) reduces your buying power. If you owe $12,000 but your car is worth $10,000, you have -$2,000 equity. This gets rolled into your new loan, reducing the vehicle price you can afford or increasing your monthly payment. In the calculator, enter your trade value and the amount you owe separately to see the impact.

Should I choose a new or used car to maximize affordability?

Used cars typically offer better affordability because they cost 30-50% less than new, depreciate slower, and have lower insurance costs. For the same monthly payment, you can often afford a higher-quality used vehicle with more features. However, new cars offer full warranties and the latest technology. In Oregon and SW Washington, certified pre-owned vehicles offer a good middle ground with warranty protection at used car prices.

How does my credit score affect how much car I can afford?

Your credit score affects your interest rate, which directly impacts affordability. For example, on a $20,000 loan for 60 months: excellent credit (5% APR) = $377/month, while bad credit (20% APR) = $530/month. That's a $153/month difference! Lower rates mean you can afford a more expensive car with the same monthly payment, or pay less monthly for the same car.

Car Affordability Calculator

Estimate the maximum vehicle price that fits your budget.

Desired Monthly Payment

Down Payment

Trade-In Value

Amount Owed on Trade-In

Estimated Interest Rate (APR %)

Loan Term (Months)

How It Works

This reverse calculator helps you discover the maximum vehicle price that fits your monthly budget. Enter your desired payment, down payment, trade-in details, estimated APR, and loan term—then see what you can afford!

Note: Calculator provides estimates for planning. Actual financing determined by lenders. Does not include taxes or fees. We connect you with dealerships.

Frequently Asked Questions

How much car can I afford?

Great question! Use our calculator to explore what fits your budget. Enter your comfortable monthly payment, and we'll show you the vehicle price range you can shop for based on your down payment, trade-in, and estimated rate.

What is trade-in equity?

Trade-in equity is the difference between your current vehicle's value and what you still owe on it. Positive equity gives you more buying power, while negative equity means you'll need to account for the difference.

Will I definitely get approved for this amount?

The calculator shows what you might afford based on your inputs. When you apply, dealerships and their lenders will review your application and provide specific financing options based on your credit and financial situation.

What if I owe more than my car is worth?

If you have negative equity, many dealerships can work with you by rolling the difference into your new loan. We connect you with dealerships experienced in these situations—submit an application to explore your options.

Ready to Get Started?

Submit an application to see what financing options may be available.