Estimate your monthly car finance payment, total interest, and full amortisation schedule.
Rates as of Q2 2025 (example)
| Period | Date | Payment | Principal | Interest | Balance |
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A car loan calculator estimates your monthly payment, total interest, and full repayment schedule for car finance, after accounting for your deposit, any part-exchange value from your current car, and admin fees. This calculator models a standard amortising loan (similar to Hire Purchase), where you make equal monthly payments that gradually pay off the full amount borrowed.
The amount you need to finance is the car price minus your deposit and part-exchange value, plus any admin fees added to the loan. The monthly payment is then calculated using the standard amortising loan formula based on the APR and term.
Formula: Loan Amount = Car Price − Deposit − Part-Exchange Value + Fees. Monthly Payment = [Loan Amount × r × (1+r)n] / [(1+r)n − 1], where r is the monthly interest rate (APR ÷ 12 ÷ 100) and n is the number of months.
Example: For an £18,000 car with a £2,000 deposit and no part-exchange or fees, the loan amount is £16,000. At an 8.9% APR (example rate — enter your actual rate) over 4 years (48 months), the monthly payment is roughly £397.50, with total interest of about £3,080 over the term — meaning the total cost of the car including finance is roughly £21,080. (Note: all figures in this example are for illustration purposes only and do not represent a finance offer.)
This calculator models a Hire Purchase (HP) style agreement, where the loan amount is fully amortised over the term and you own the car outright once all payments are complete. Personal Contract Purchase (PCP), another common form of car finance in the UK, works differently — it includes a large "optional final payment" (balloon payment) at the end of the term, which lowers the monthly payments along the way but requires you to either pay the balloon, return the car, or trade it in toward another agreement. PCP isn't modelled by this calculator. APRs for car finance vary significantly based on whether the car is new or used, the lender, and your credit history — dealership finance offers (sometimes advertised at low introductory APRs) may also have specific eligibility requirements. Always compare the total amount payable, not just the monthly payment, when evaluating car finance offers.
With Hire Purchase, you make equal monthly payments that fully pay off the loan, and you own the car at the end. With Personal Contract Purchase (PCP), monthly payments are lower because a large "optional final payment" (balloon) remains at the end, which you can pay to own the car, return the car, or use as part-exchange toward a new agreement. This calculator models HP-style finance.
No — the default is an example only. Car finance APRs vary significantly based on whether the car is new or used, the lender or dealership, and your credit history. Enter the actual APR from a finance quote for an accurate result.
The value of a car you trade in (part-exchange) is deducted from the price of the new car, similar to a deposit, reducing the amount you need to finance. This lowers both your monthly payment and total interest.
It depends on the finance agreement — some lenders add admin or arrangement fees to the loan amount (so they're financed and accrue interest), while others require them to be paid upfront. This calculator assumes fees are added to the loan amount; check your specific agreement for how fees are handled.
Many car finance agreements allow early settlement, sometimes with an early settlement fee or a statutory rebate of interest calculation. Contact your finance provider for an accurate early settlement figure, as it may differ from simply stopping the amortisation schedule partway through.
No. This calculator estimates the finance payment only — based on the loan amount, APR, and term. Insurance, fuel, road tax, servicing, and other running costs are separate and should be budgeted for in addition to the finance payment.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a finance offer or financial advice. The default APR is a sample value and does not reflect rates currently available from any specific lender or dealership. Car finance terms, fees, and APRs vary by provider and depend on your individual circumstances. Always obtain a personalised quote from a finance provider before making any borrowing decisions.