How much car can I afford?
Start from the payment you can comfortably make, then work back through APR, term, tax and fees to the highest vehicle price. A longer term lowers the payment but raises the total interest.
Worked example
$450/month, 7.9% APR, 60 months, $3,000 down, 9.5% tax, $85 doc fee, $500 government fees:
- Amount you can finance: $22,245.76
- Out-the-door budget: $25,245.76
- Highest vehicle price: $22,513.87 (before tax and fees)
Your actual APR depends on your credit and lender. Get pre-approved so you know your rate before you shop (CFPB). Lenders also look at your debt-to-income ratio (CFPB). Don't forget insurance, fuel and maintenance.
Next step: Run your own loan numbers →
Sources
Last reviewed October 12, 2026 by TrustBuy Expert. General information, not legal or financial advice.