Affordability Calculator
Determining how much you can afford for your next vehicle is the most critical step in the car-buying process. Our car affordability calculator allows you to start with your ideal monthly budget and work backwards to find a realistic vehicle price range. We factor in essential Canadian variables, including provincial sales tax (HST/GST/PST), interest rates, and the significant equity boost from your trade-in vehicle. By understanding your maximum purchase price today, you can shop with confidence and avoid the stress of overextending your finances. Whether you're looking for a new SUV or a reliable used sedan, our tool provides the clarity you need to stay within your budget.
Budget Details
Maximum Vehicle Price
$35,143
Based on your monthly budget of $600 over 72 months.
Total Loan Amount
$34,712
Total Interest Paid
$8,488
Budgeting Tip
Experts recommend keeping your total monthly car expenses (payment, insurance, fuel) under 15-20% of your take-home pay. Don't forget to account for the tax savings from your trade-in, which effectively lowers the price of your new vehicle.
Find Cars in This RangeFrequently Asked Questions
How much of my income should go toward a car payment?
Financial experts generally suggest the "20/4/10 rule": Put down 20%, finance for no more than 4 years, and keep your total monthly automotive expenses (including insurance and fuel) under 10% of your gross income. At a minimum, ensure your total debt-to-income ratio remains healthy.
Does my trade-in increase my affordability?
Yes, significantly. A trade-in acts as a down payment, reducing the amount you need to finance. Furthermore, in most Canadian provinces, you receive a sales tax credit on the trade-in value, which further lowers the total cost of the new vehicle and allows your monthly budget to cover a higher-priced car.