How to use
Enter the car price, your deposit, the APR from your finance quote and the term in months. The monthly payment updates as you type, and the buttons fill in common terms from 24 to 84 months. Most UK car finance runs for 24 to 60 months.
You also see:
- Amount of credit: the car price minus your deposit.
- Total charge for credit: the interest you pay over the term.
- Total amount payable: your deposit plus all the monthly payments, the figure every UK finance quote must show.
- Equivalent nominal rate: the APR turned into the yearly rate that is charged monthly.
Open “Repayment schedule” to see how much of each payment goes to capital and interest, and what you still owe after each month.
How it’s calculated
UK APRs are effective annual rates, so the APR is first turned into a monthly rate:
Monthly rate = (1 + APR)^(1/12) − 1
Monthly payment = P × r × (1 + r)^n ÷ [(1 + r)^n − 1]
P is the amount of credit, r is the monthly rate and n is the number of monthly payments. Each month’s interest is the balance owed × the monthly rate, and the rest of the payment reduces the balance.
Example
A £20,000 car with a £2,000 deposit at 9.9% APR:
| Term | Monthly payment | Total charge for credit | Total amount payable |
|---|---|---|---|
| 36 months | about £576 | about £2,750 | about £22,750 |
| 48 months | about £452 | about £3,697 | about £23,697 |
| 60 months | about £378 | about £4,670 | about £24,670 |
At 6.9% APR over 48 months, the payment would be about £428 and the total charge for credit about £2,566.
HP, PCP or a personal loan?
| Hire purchase (HP) | PCP | Personal loan | |
|---|---|---|---|
| Who owns the car | The lender until the last payment | The lender, unless you pay the balloon | You, from day one |
| Monthly payments | Pay off the whole car | Lower, because of the final balloon payment | Pay off the whole loan |
| At the end | The car is yours (sometimes after a small option-to-purchase fee) | Pay the balloon, hand the car back or part-exchange it | Nothing more to pay |
| This calculator | Yes | Not directly: the balloon payment isn’t modelled | Yes |
PCP deals also have an annual mileage limit and charges for excess wear. Compare the total amount payable, not just the monthly payment.
If you had car finance between 2007 and 2024, you may be owed money if the dealer’s commission wasn’t properly disclosed. MoneyHelper explains how to check and complain for free.