Car Payment by Salary

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Directions:

Select a car payment based on salary
Select a finance duration
Select an apr based on credit score
View the car price the salary can afford

What car can I buy on a $ salary?

Bank underwriting guidelines allow for the monthly car payment to be 15% of the total monthly income.

With a salary of $, and a monthly income of $, the maximum car budget is $ per month, which can afford a maximum priced vehicle of $ using a month term with a % APR.

The maximum a buyer can afford based on salary may be more than the buyer wants to spend in terms of monthly payment. Research automakers that offer incentivized rates to increase affordability.

What is PTI?

The payment-to-income ratio is called PTI in the automotive industry.

The maximum a buyer can spend depends on PTI, finance duration, and the APR.

Can I calculate PTI by hand?

Yes.

PTI is a quick calculation, however the APR formula is more complex.

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