Auto Loan Affordability Calculator

Auto Loan Affordability

Affordability is an important parameter, when you start looking for owning or leasing a car or an automobile. You have to estimate the amount, which you can afford to pay as the monthly payment based upon you monthly incomes and expenditures.

This will give you an estimate about your paying capacity to serve an auto loan or lease. Once you have arrived at a figure, then you can proceed to calculate the amount of loan you would be eligible to get for the purchase of your dream car.

Auto Loan Affordability Calculator

Here we present you a simplified version of a auto loan affordability calculator, which will estimate the amount which you can spend to own your target vehicle. You should understand that this is the estimate based upon your current monthly incomes and expenditures and try to not go beyond the limit specified by this calculator unles you have some compelling reasons for the same.

Following Inputs are required to be entered for auto loan affordability calculator

  1. Maximum Monthly Payment: The maximum auto loan payment you can make each month.
  2. Sales Tax: The sales tax percentage you will pay on this purchase.
  3. Other Financed Charges: Sticker price add-on charges to be financed with your auto loan. These may include license plates, vehicle registration, luxury tax, extended warranty policy, dealer prep charges, or destination charges, etc.
  4. Cash Down Payment: Any cash amount you plan to apply as a down payment to reduce your loan or lease amount.
  5. Trade-In Value: Any vehicle trade-in amount you plan to apply as a down payment to reduce your loan or lease amount.
  6. Dealer Rebate: Any dealer (or manufacturer) rebate or matching down payment amount you plan to apply as a down payment to reduce your loan or lease amount.
  7. Interest Rate: The annual percentage rate you will pay for this loan.
  8. Length of Loan: How long you will pay on this loan.
Following Results are calculated by the Auto Loan Affordability Calculator:
  1. Maximum Vehicle Price: You should be looking at vehicles priced this amount or less to keep payments at or below ‘Maximum Monthly Payment’.
  2. Loan Amount: Your total auto loan amount once ‘Sales Tax’ and ‘Other Financed Charges’ are added and ‘Total Down Payments’ is subtracted.
  3. Sales Tax Amount: The amount of sales tax you will pay on this purchase.
  4. Annual Cost: The amount of money you will pay each year for this loan.
1 Comment
  1. Finding the best auto loans to fit your budget can take some time and planning. This can seem like a daunting process if you are not prepared in advance. With all of the factors involved, you should know what to look for to get the best rates. Here are some tips on what you need to know beforehand..

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Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.