How this number is made
Start from the payment that fits, then back into the amount financed. Insurance, fuel, and repairs are not in that payment. Subtract them from your budget before you type it if they are not already handled.
- The payment is principal and interest only.
- A longer term buys a more expensive car and more interest. The interest row shows that.
Formula
Amount financed = payment × ((1+r)^n − 1) ÷ (r(1+r)^n).
Worked example
With the figures already in the form, amount that payment can finance is $22,726.
Questions
Does this include tax and title?
Only if your payment budget was lowered to leave room for them, or you will pay them in cash. Rolled-in tax means a smaller car for the same payment.
What about the down payment?
Add it to the amount financed if you want the purchase price. This page is the loan, not the sticker.