Car Affordability Calculator
Estimate a purchase budget from a comfortable monthly payment.
Estimated vehicle price budget
An illustration based on your inputs, not a quote or recommendation.
Read the formula and assumptions below before making a decision.
Car Affordability: worked example
This is an illustrative scenario using the default inputs, not your personal result. Amounts use AED for illustration; the general formula also accepts your own figures in the selected currency.
| Input | Example value |
|---|---|
| Monthly all-in car budget | AED 2,000.00 |
| Fuel, insurance & maintenance per month | AED 700.00 |
| Down payment | AED 10,000.00 |
| Annual reducing-balance interest rate | 6% |
| Loan term in months | 60 months |
Estimated vehicle price budget: AED 77,243.23
- Available monthly loan payment: AED 1,300.00
Before you use this estimate
Enter fuel, insurance and maintenance before calculating what is available for repayments. The model uses a reducing-balance rate rather than a flat rate.
Why does the car price budget include the down payment?
The repayment budget estimates how much principal you can finance. Your entered down payment adds to that financed principal to estimate a purchase budget.
How the calculation works
Assumptions & limitations
Uses reducing-balance interest, fixed payments and no fees. Excludes purchase taxes and registration. Actual lending eligibility is not assessed.
Use the result thoughtfully
Try a second scenario to see how a change in costs, timing or contributions affects the result. Keep all amounts in one currency and use consistent periods. Confirm important figures against your own records before acting.
Last reviewed: 3 November 2026 · Method and example review by CashOrbits.
Full precision is used for calculations; displayed amounts are rounded.