Side by Side Auto Loan Calculator
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How much car can I afford?
Standard underwriting guidelines from auto lenders allow 15% of your monthly income to be spent on your car note. If you earn $3000 per month, then you can afford a $450 car payment. How much money can I borrow? You can borrow $9000 for every $1000 of your monthly income if all other budget factors are in line. If you earn $4000 per month, then you can borrow $36,000 with a monthly payment of $600. How much does loan term affect payment? A three-year loan payment is nearly double a six-year loan. If budget flexibility is a concern, then sign up for a six-year loan and make larger payments whenever you have extra cash. If cash flow remains consistent, you can still payoff the six-year loan in three years, and not pay the interest charges from those prepaid months. |
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Instructions:
Our side by side auto loan calculator is designed to showcase which factors affect your car loan the most. Keep the amount financed the same and experiment with the APR and term to see what helps get to the monthly payment you want. It’s beneficial to know the term before you submit a loan application to increase the odds of a favorable approval. You can also move the amount financed up or down to see how different down payments will change the monthly payment. |
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