Edmunds Car Affordability Calculator
Expert Guide to Edmunds Car Affordability Calculator
Edmunds Car Affordability Calculator is an essential tool for car buyers to determine their budget and affordability…
- Enter your monthly income…
- Enter your monthly expenses…
- Enter your down payment percentage…
- Choose your loan term…
- Enter your interest rate…
- Click ‘Calculate’…
The calculator uses the following formula to calculate the maximum affordable car price…
| Income | Expenses | Down Payment | Loan Term | Interest Rate | Max Affordable Price |
|---|---|---|---|---|---|
| $5000 | $2000 | 20% | 5 | 4.5% | $25,000 |
| $7000 | $2500 | 30% | 6 | 3.5% | $40,000 |
| $6500 | $2200 | 25% | 4 | 4% | $32,500 |
| Car Type | Average Price | Average Loan Term | Average Interest Rate |
|---|---|---|---|
| Compact Cars | $18,000 | 60 months | 4.5% |
| Midsize Cars | $24,000 | 60 months | 4% |
| Luxury Cars | $50,000 | 72 months | 3.5% |
- Consider used cars to lower your down payment…
- Improve your credit score to get lower interest rates…
- Negotiate the price and terms of your loan…
What if I have a co-signer?
Having a co-signer can help you qualify for a loan and get a lower interest rate…
Can I lease a car instead of buying?
Leasing can be a good option if you prefer lower monthly payments and want to drive a new car every few years…
Learn more about car loans from CFPB
Try Bankrate’s auto loan calculator