Enter the numbers on a car you're considering to see the real monthly payment, whether it clears the standard affordability rule of thumb, and how it compares to leasing instead.
Starting example numbers below; replace them with your own. Trade-in value reduces what you finance the same way a down payment does.
Tax is estimated on the price minus your trade-in credit (most states tax it that way; a few tax the full price, and a handful, Alaska, Delaware, Montana, New Hampshire, Oregon, charge no state sales tax at all). Both are assumed rolled into the loan below; pay them up front instead and just leave them out.
A widely used rule of thumb: put at least 20% down, finance it for 4 years or less, and keep total monthly transportation costs, payment plus insurance, maintenance, and fuel, at or under 10% of your gross (pre-tax) monthly income.
Car value follows a general, typical depreciation curve (about 16% lost in year one, roughly 15%/year after that), not a prediction for any specific make or model. Move your mouse over the chart to see both numbers at any month.
Uses the vehicle price above as the negotiated (capitalized) price. A lease payment is two pieces: a depreciation charge (the value the car is expected to lose over the lease) and a finance charge (rent on the money, based on the money factor).
Put at least 20% down, finance for no more than 4 years, and keep total car costs, payment plus insurance and running costs, under 10% of your gross monthly income. It is a guideline, not a lending requirement. The calculator checks your numbers against each part.
It means owing more than the car is worth. Cars lose value fastest in their first years, so a small down payment and a long loan can leave you underwater for much of the term. That becomes a problem if the car is totaled or you need to sell it. The loan-balance chart shows whether and for how long it happens.
A lease's money factor works like an interest rate: multiply it by 2,400 to get the rough APR equivalent. The buy-versus-lease section prices both on the same car so you can compare what each costs over the lease term.