Finance Calculators
Auto Loan Calculator
Your monthly car payment is the amount financed — price minus down payment and trade-in, plus sales tax and fees — spread over the term at the agreed rate. Enter those figures and this calculator returns the monthly payment, the total interest, the total cost and a full amortisation schedule, so offers can be compared side by side.
Calculator
How It Works
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 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 — 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 — Standard: A £25,000 car with £5,000 down (20%) and £500 trade-in. Loan amount = £19,500. At 5% over 5 years: monthly payment ≈ £368. Total interest ≈ £2,580. Total cost ≈ £22,080. Example 2 — Shorter term: Same £19,500 loan at 5% over 3 years: monthly payment ≈ £585. Total interest ≈ £1,540. Saving £1,040 in interest. Example 3 — Cash incentives: A £25,000 car with £1,500 cash rebate, £5,000 down. Loan = £18,500. At 5%: monthly ≈ £349. Total interest ≈ £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 — 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 — 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 — 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.
Dealer Financing vs Direct Lending
Dealerships usually arrange your loan through banks, finance companies or their own lending arm, and they are paid a commission for it — which means the rate you are quoted can carry a markup. Direct lending skips the middleman: you apply to a bank, credit union or online lender yourself and the quoted rate is the rate you pay. The practical move is to get a written quote from your own bank before you visit the dealership. That pre-approval sets a benchmark — if the dealer cannot beat it, use the outside loan. Compare APRs, not just interest rates, since fees are included in the APR, and keep the term length identical when you compare.
Vehicle Rebates and Incentives
Cash rebates come from the manufacturer, not the dealership, so every buyer qualifies for the same amount — a rebate is never a personal favor from the salesperson. The main fork in the road: promotional financing (such as 0% APR) and a large cash rebate are usually alternatives, so run both through this calculator before deciding. Because the money is manufacturer-funded, financing the car elsewhere does not cost you the rebate; if a discount only appears when you accept the dealer's financing, treat it as a financing condition, not a rebate. Ask for the out-the-door price in writing with each incentive itemized, and check the manufacturer's website for current offers before you visit.
Trade-In Value Tips
Your trade-in is a separate deal from the car you are buying — negotiate the two apart, or a low trade-in offer can disappear inside a large discount on the new car. Before you go, collect at least one written purchase offer from an online buying service or another dealer and compare it with the private-sale price: selling privately usually nets more, but takes longer and comes with paperwork. Clean the car, gather the service history, and bring both to the appointment. If you still owe money on the trade-in, watch out for negative equity: the payoff is subtracted from its value, and any shortfall is added to the new loan, where it collects interest of its own.
Last reviewed: September 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 — 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.
Should I take a longer or a shorter car loan term?
A longer term lowers the monthly payment but raises the total interest, because you pay interest over more periods. A shorter term costs more each month and less overall. Compare both in the term field before you sign: the total interest row shows the difference in the currency on this page.