Car Finance Calculator
Put in the car price, your deposit and how long you want the agreement to run, and see an estimated monthly payment, the total cost of credit and the total amount payable.
Price, deposit, term. See an estimated monthly payment and what it costs in total.
Rates from 7.9% APR. Representative 19.8% APR. CarFinanced is a credit broker not a lender.
What might it cost?
Move the controls to an amount, a term and a credit profile that feel close to yours. The figure on the right updates as you change it. It is a picture, not a quote.
Your figures
Example APRs: Bad 19.9% · Average 14.9% · Good 9.9% · Excellent 7.9%. Actual rates depend on the lender’s assessment of your application, the amount and the term requested.
What this calculator tells you in seconds.
The calculator takes three figures from you — the car price, any deposit, and how long you want the agreement to run — and estimates the monthly payment, the total cost of credit, and the total amount payable. You pick an APR profile, and the maths runs instantly in the browser.
It is an illustration, not a quote. Your real APR depends on the lender’s view of your application, so the figure you see here is a planning number rather than an offer. CarFinanced is a credit broker, not a lender. All finance is subject to status. See the finance glossary
You pick three figures
Car price, deposit (optional) and term in months. Add an APR profile and the calculator does the rest. Nothing is submitted anywhere, so you can try as many combinations as you like.
The maths runs instantly
Interest is applied to the remaining balance each month, the same reducing-balance method a lender uses. You see the estimated monthly payment, the total cost of credit and the total amount payable on screen.
An estimate, not a quote
The figure here is a planning number, not an offer. Your real APR, monthly and total are set by the lender after a full application. All finance is subject to status, affordability and the lender’s assessment.
How car finance monthly payments are calculated
A car finance monthly payment is the amount you borrow, plus interest, spread evenly across the term. Interest is applied each month to the balance that remains, so earlier payments carry more interest and later ones carry more principal.
Start with the loan amount
The amount financed is the car price minus any deposit and any part-exchange equity you add. That figure is the balance the lender charges interest on from day one.
APR applies to the balance left
The APR is converted to a monthly rate and applied to whatever balance remains. As you pay the loan down, the interest charged each month comes down too. This is called reducing-balance interest.
Each payment covers interest first
Every monthly payment is split in two. The first slice covers that month’s interest, the second slice reduces the balance. The split shifts in your favour month after month.
Longer term, lower monthly
Stretching the term over more months brings the monthly down, because the same balance is split across more payments. The total you pay goes up, because the balance earns interest for longer.
Shorter term, lower total
A shorter term raises the monthly but cuts the total you pay, because interest sits on the balance for fewer months. Pick a term the budget can carry in a quiet month, not a perfect one.
What actually changes the APR?
A lender’s APR for your application is set from the whole picture: your credit history, your monthly affordability, any deposit or part-exchange, the term you’ve chosen, and the car itself. The calculator uses an APR profile you pick, so the figure on screen is a planning estimate rather than a lender’s offer.
An eligibility check with CarFinanced returns the options our panel of lenders can consider, assessed on the whole picture rather than one number. CarFinanced is a credit broker, not a lender, and makes no advice or recommendation.
What a lender weighs
01 How accurate is this car finance calculator?
The maths is accurate, the inputs are illustrative. The calculator uses standard reducing-balance interest, the same formula lenders use. Your actual monthly, total cost of credit and total payable depend on the APR a lender offers you after a full application. Treat the figure here as a planning number.
02 What APR should I use in the calculator?
Pick the credit profile that best matches your file. The four profiles carry example APRs: Bad 19.9%, Average 14.9%, Good 9.9% and Excellent 7.9%. These are illustrative bands only. Your real APR is set by the lender for your application and may be higher or lower than the band you pick.
03 How is the monthly payment worked out?
The calculator applies the APR as a monthly rate to the balance that remains, so interest reduces as you pay the loan down. Each monthly payment covers that month’s interest first and the rest of the balance second. The monthly stays the same across the term, but the split between interest and principal shifts in your favour month by month.
See the maths explained →04 Does the calculator include fees and the deposit?
The amount you enter is the amount financed, so a deposit reduces it before the calculation runs. Fees are not included in this illustration. A real quote from a lender sets out every fee that applies, including the option to purchase fee on HP and any administration fee from the broker.
05 Will using this calculator affect my credit score?
No. The calculator runs in your browser and submits nothing anywhere, so nothing is marked on your credit file. The eligibility check that follows is a soft search, visible only to you and the searching lender. A hard search only happens if you accept an offer and formally apply to a lender, which you decide to do.
06 What’s the longest term I can pick?
The calculator carries 24, 36, 48 and 60 months, which is the normal range for a UK car finance agreement. Some lenders go beyond 60 months. A longer term brings the monthly down and the total payable up, because interest sits on the balance for longer.
07 Can I get a car finance quote for the exact figure I calculated?
Possibly, but the real quote comes from a lender rather than the calculator. The eligibility check matches your profile to our panel of lenders and returns the APR, monthly and total they can offer for your application. The nearer your calculator inputs are to the real agreement, the closer the two figures tend to be.
Run the eligibility check →08 Is “guaranteed car finance” at the shown rate real?
No. UK consumer credit rules require every lender to assess affordability and status on each application, so no broker or lender can guarantee acceptance or a specific rate in advance. Anyone promising that is misleading you. The figures on this calculator are an estimate, not a quote.
Guaranteed car finance explainer →09 What’s the difference between APR and flat rate?
APR applies to the balance that remains each month, which comes down as you pay. Flat rate applies to the whole original balance for the whole term, which doesn’t come down. For the same headline number, flat rate is more expensive than APR. UK consumer credit agreements must show APR, which is what this calculator uses.
10 Can I settle a car finance agreement early and save interest?
Yes. Under the Consumer Credit Act 1974 you can request an early settlement figure at any time, and the lender must provide it within 28 days. Settling early cuts the interest you pay, because the balance stops earning interest from the settlement date. Terms are set in your agreement.
Early settlement guide →