Car finance calculator
United Kingdom · 2026/27 tax year
Also for Canada
Also for United StatesSee what a car will really cost you each month, and in total, once interest is added. Works for a personal loan or a hire purchase (HP) deal.
How car finance payments are worked out
Take the car price, subtract your deposit and the value of any car you part-exchange, and the rest is what you borrow. Interest is then charged on the amount you still owe each month, and the payments are spread evenly over the length of the deal.
Example
A £20,000 car with a £2,000 deposit means borrowing £18,000. At 7.9% APR over 4 years, the payment is £438.59 a month. You pay £3,052.23 in interest, so the car costs £23,052.23 in total.
Hire purchase and PCP
| Hire purchase (HP) | Personal contract purchase (PCP) | |
|---|---|---|
| Monthly payments | Pay off the whole car | Lower, because part of the price is deferred |
| At the end | You own the car | Pay a final "balloon" payment to keep it, hand it back, or trade it in |
| Mileage limit | None | Yes, with charges if you go over |
This calculator works out HP and personal loan payments. A PCP deal has a final balloon payment, so its monthly payments are lower but you do not own the car unless you pay it.
Frequently asked questions
What does representative APR mean?
A representative APR is the rate at least 51% of successful applicants get. Depending on your credit history, you may be offered a higher rate, so check your actual quote.
Is a longer deal cheaper?
A longer deal lowers the monthly payment but you pay interest for longer, so the total cost goes up. Choose the shortest term you can comfortably afford.
Does a bigger deposit help?
Yes. Every pound of deposit is a pound you do not borrow, so you pay less interest and lower monthly payments.
Estimates for guidance only. Your lender's quote may include fees, such as an option to purchase fee, and may calculate interest slightly differently.
Last checked and updated: October 2026