Used Car Purchase Calculator

The loan payment only. Insurance, fuel and maintenance sit outside this figure.
Use the rate you have actually been quoted; it moves the answer more than anything else here.
Net trade-in means the trade-in allowance after any loan still owed on it is paid off.
Sales tax, documentation and registration fees, gap insurance, extended warranty - anything financed alongside the vehicle.
Vehicle price you can afford
20,880.10
Car Affordability Calculator
Most you can finance
20,880.10
Principal bought per 1 of monthly payment
41.7602
Monthly interest rate
0.583333 %
Total you will pay over the term
24,000.00
Total interest over the term
3,119.90
Share of your payments that is interest
13.00 %
Worked out from OpenStax, Principles of Finance 2e, section 8.3 Loan Amortization and 3 other sources.
Affordability here is a planning estimate. Budget separately for insurance, fuel, maintenance, registration and tyres, which this figure excludes.
A planning estimate, not a credit decision. The rate and term you are actually offered depend on the lender and your credit, and ownership costs beyond the loan - insurance, fuel, maintenance, registration, tyres - are not included here.

How this is worked out

5 steps
  1. Monthly rate r = 7% / 1200 = 0.00583333.
  2. Annuity factor = (1 - (1 + 0.00583333)^-48) / 0.00583333 = 41.760201.
  3. Most you can finance = 500 x 41.760201 = 20880.1.
  4. Vehicle price = 20880.1 + 0 cash and net trade - 0 financed taxes and fees = 20880.1.
  5. Over 48 months you would pay 24000 in all, of which 3119.9 is interest.

Results are general information, not financial, tax, legal, medical or engineering advice.