10k Loan Interest Rate Calculator

Car Loan Affordability Calculator

Calculate exactly how much car you can afford based on your monthly budget.

36 Months (3 Years) 48 Months (4 Years) 60 Months (5 Years) 72 Months (6 Years) 84 Months (7 Years)

Your Estimated Purchase Power

Total Sticker Price (Pre-tax):

Total Loan Amount:

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Understanding Car Affordability

Buying a car is more than just looking at the sticker price. To truly understand what you can afford, you must work backward from your monthly budget. Financial experts often suggest that your total car-related expenses (including insurance and fuel) should not exceed 15-20% of your take-home pay.

How This Calculator Works

This tool uses the Present Value of an Annuity formula to determine how much you can borrow based on your monthly payment and interest rate. Here is the breakdown:

• Loan Principal: Calculated using your monthly budget, APR, and term.
• Net Trade-in: We subtract what you owe on your current car from its trade-in value.
• Sales Tax Adjustment: The calculator accounts for local sales tax to give you a realistic "sticker price" target.

Real-World Example

If you have $500 per month to spend on a car payment, a $4,000 down payment, and you qualify for a 6% interest rate over 60 months (assuming 7% sales tax), your maximum sticker price is approximately $28,000. This includes roughly $1,800 in sales tax and a $25,800 loan principal.

Key Factors Influencing Your Budget

1. Interest Rates (APR): Your credit score is the primary driver of your APR. A higher credit score can lower your rate significantly, allowing you to afford a more expensive car for the same monthly payment.

2. Loan Term: Extending your loan to 72 or 84 months lowers the monthly payment but increases the total interest paid over the life of the loan. Most experts recommend staying within 60 months to avoid being "underwater" (owing more than the car is worth).

3. Down Payment: Aim for at least 20% down on a new car and 10% on a used car to offset the initial depreciation.

function calculateCarAffordability() { var monthlyBudget = parseFloat(document.getElementById('monthlyBudget').value); var loanTerm = parseFloat(document.getElementById('loanTerm').value); var annualInterestRate = parseFloat(document.getElementById('interestRate').value); var downPayment = parseFloat(document.getElementById('downPayment').value) || 0; var tradeInValue = parseFloat(document.getElementById('tradeIn').value) || 0; var owedOnTrade = parseFloat(document.getElementById('owedOnTrade').value) || 0; var salesTaxRate = parseFloat(document.getElementById('salesTax').value) / 100; if (isNaN(monthlyBudget) || monthlyBudget S = PP / (1 + T) // However, the loan amount and cash are what we have to spend TOTAL. var totalPurchasingPower = loanAmount + totalCashDown; var estimatedStickerPrice = totalPurchasingPower / (1 + salesTaxRate); // Formatting var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', }); document.getElementById('stickerPriceResult').innerText = formatter.format(estimatedStickerPrice); document.getElementById('loanAmountResult').innerText = formatter.format(loanAmount); var summary = "With a " + formatter.format(monthlyBudget) + " monthly payment for " + loanTerm + " months at " + annualInterestRate + "% APR, you can afford a car with a sticker price of approximately " + formatter.format(estimatedStickerPrice) + " (after accounting for " + (salesTaxRate * 100).toFixed(1) + "% sales tax)."; document.getElementById('summaryText').innerText = summary; document.getElementById('resultsArea').style.display = 'block'; // Scroll to results document.getElementById('resultsArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }