Finance Calculators
Auto Loan Calculator
Estimate your monthly car payment. Enter the loan amount, term in years, and annual interest rate to see your payment and total costs.
How It Works
Monthly Payment = P Γ [r(1+r)^n] Γ· [(1+r)^n β 1], where P = loan amount, r = monthly rate, n = months.
About This Calculator
What It Does
Estimate your monthly car payment including interest and all purchase costs. Enter the vehicle sale price, down payment, trade-in value, cash incentives, sales tax rate, fees, loan term, and interest rate. The calculator shows the monthly payment, total interest, total repayment, and a detailed cost breakdown including sales tax and fees. It also generates a full amortization schedule. Use it to compare different financing options β see how a larger down payment, trade-in, cash rebates, or shorter loan term affect your monthly payment and total vehicle cost.
Worked Example
Example 1 β Standard: A Β£25,000 car with Β£5,000 down (20%) and Β£500 trade-in. Loan amount = Β£19,500. At 5% over 5 years: monthly payment β Β£368. Total interest β Β£2,580. Total cost β Β£22,080. Example 2 β Shorter term: Same Β£19,500 loan at 5% over 3 years: monthly payment β Β£585. Total interest β Β£1,540. Saving Β£1,040 in interest. Example 3 β Cash incentives: A Β£25,000 car with Β£1,500 cash rebate, Β£5,000 down. Loan = Β£18,500. At 5%: monthly β Β£349. Total interest β Β£2,450.
Real-World Usage
Use before visiting a dealership to know what payment fits your budget. Compare financing offers from banks, credit unions, and dealer financing β credit unions often have the best rates. See how a larger down payment reduces your monthly cost and total interest. Use it to decide between buying new vs used (new has lower rates but higher price). Check whether the dealer's 0% financing is better than the cash rebate β the calculator helps compare the total cost.
Local Context
UK car loans include Personal Contract Purchase (PCP), Hire Purchase (HP), and personal loans secured on the car. PCP is the most popular β lower monthly payments with a final balloon payment. Typical terms: 2-5 years, rates 3-10%. The FCA regulates car finance. Dealers must clearly disclose the APR and total amount payable. A credit score above 700 (Experian) gets the best rates.
Last reviewed: March 2026.
This is an estimate only. Actual rates, terms, and tax rates depend on your location, credit score, lender, and vehicle type. Sales tax and fees are estimates β verify with your dealer and local tax authority.
Frequently Asked Questions
What is the average APR for UK car finance?
APR rates for UK car finance typically range from 3-15% depending on your credit history. Dealership finance often has higher rates than bank loans. Always check the APR, not just the monthly payment.
Is HP or PCP car finance better?
Hire Purchase (HP) means you own the car at the end. Personal Contract Purchase (PCP) has lower monthly payments but a final balloon payment. HP is better if you plan to keep the car; PCP if you prefer to change cars regularly.