Car finance calculator

What your result means

Compare HP-style repayment with a PCP-style final payment. Look beyond the monthly figure: the deposit, interest and amount needed to own the car all matter.

Compare scenarios by changing one input at a time. The glossary explains the technical words used on this page.

Estimated monthly payment

Regular capital-and-interest payment, with the entered final payment left outstanding in PCP mode.

Total payable

Deposit plus all modelled monthly payments plus the final payment in PCP mode. This assumes the final payment is made to keep the car.

Total interest

Total payable less the vehicle price. The tool includes no separate finance fees.

Final payment

The amount entered for PCP; not applicable in HP mode. This is an input, not a predicted vehicle value or guaranteed offer.

Methodology: how the calculation works

The model subtracts the deposit from the vehicle price and converts the APR into an equivalent monthly rate under no-fee assumptions. HP repays the financed balance through equal monthly payments. PCP leaves the entered final payment outstanding until the end; interest is included on that outstanding amount.

1. Subtract the deposit from the vehicle price to obtain the amount financed.
2. Convert APR to the equivalent monthly rate using (1 + APR ÷ 100) raised to 1/12, then subtract 1. The term is already entered in months.
3. For HP, calculate payments that repay the full financed balance. For PCP, calculate the regular payments allowing for the entered final amount still due at the end.
4. Add the deposit, all unrounded monthly payments and the PCP final payment for total payable. Subtract vehicle price for total interest under this no-fee model.

The assumptions behind your estimate

• The entered rate stays unchanged for the full term, not just an initial deal period. The pre-filled rate is an illustration, not a live offer.
• Payments occur at the end of each month. Daily interest, irregular dates, missed payments and changes of rate are not modelled.
• Money is displayed to the nearest pound. Totals use unrounded calculations, so multiplying the displayed payment by the number of months can differ from the displayed total.
• The deposit is paid at the start. The first regular payment is one month later and payments are at equal monthly intervals. No additional finance fees are modelled.
• PCP includes the selected number of regular monthly payments, plus the entered final payment at the end of the last month. A provider’s agreement may use a different payment schedule.
• PCP examples assume the car is kept and the final payment is paid. Returning or changing the car has different conditions and is not costed here.
• The final payment is supplied by you, not predicted from mileage or vehicle value. It must be between zero and the amount financed. Invalid or incomplete inputs produce a message instead of an estimate.
• The deposit is included in total payable. No documentation or option-to-purchase fee is added. The APR conversion assumes a no-fee schedule rather than reconstructing charges from an advertised APR.

Two simple worked examples

Both examples use an £18,000 car, £2,000 deposit, 60 regular monthly payments and an illustrative 9.9% APR with no additional fees. The PCP example adds a £6,500 final payment at the end of month 60 to own the car.

A closer look: the final payment and deposit

Keep the car price and APR unchanged. Each row includes all regular repayments, the deposit and any final payment needed to own the car, without additional fees.

On a small screen, swipe the table sideways to see every figure.

Leaving a larger final payment can lower monthly payments while increasing interest because more capital remains unpaid for longer. Increasing the deposit reduces the financed amount, but uses more cash at the start. Compare total payable and the final payment as well as the monthly figure.

Examples use the stated assumptions and the calculator’s rounding. They are illustrations, not product offers, personalised recommendations or guarantees.

What the estimate does not include

• Lender-specific payment dates or schedules, documentation fees, option-to-purchase fees and other charges not represented by this no-fee model.
• Mileage or condition charges, maintenance, insurance and other running costs.
• The cost of returning the car, changing it for another vehicle, settling early or borrowing to fund the final payment.

Car finance glossary: the words explained

Plain-English definitions of the finance, calculation and technical terms used on this page. Dotted links take you directly to the relevant definition.

Affordability / affordability check

An assessment of whether payments fit income, spending and other financial commitments. This tool does not perform that assessment.

Amortisation

Paying off borrowing gradually through regular payments covering interest and some capital. With a constant rate and payment, the interest share reduces as the balance falls.

Annual / monthly rate

Annual means per year; monthly means per month. A monthly rate is not interchangeable with an annual rate. The methodology explains this tool’s conversion.

APR (annual percentage rate)

A measure of the annual cost of borrowing that includes interest and applicable compulsory charges, using specified calculation rules. This tool converts the entered APR into a monthly rate for its stated no-additional-fee assumptions; it cannot identify a lender’s individual fees from APR alone.

Arrangement fee / product fee / lender fee

A charge for setting up or providing a financial product, separate from interest. A percentage fee needs a stated base amount.

Balance / outstanding balance

The money held in an account, or the amount still owed on a loan, at a given time.

Balloon / final capital payment

A larger amount left to pay at the end of a finance agreement. It is separate from the regular instalments.

Broker / credit broker / broker fee

A business that introduces customers to finance providers or helps arrange finance, rather than lending the money itself. A broker fee is a charge for that service.

Capital / principal / amount borrowed

The original money borrowed, separate from interest. Paying back capital reduces the outstanding loan.

Compounding / compound interest

Adding interest or investment growth to a balance so that it can itself earn interest or growth in later periods.

Credit / finance / borrowing

Money made available to borrow and repay later, usually with interest or charges.

Credit check / credit status / credit history

A check of information about past borrowing and repayments, and the financial record it describes. Providers may use it when assessing an application.

Deposit

Money contributed towards a purchase without borrowing it. Here it reduces the amount financed.

Discounting / present value

Allowing for the timing of future payments when expressing them as a value at the start. It is a calculation step, not a price reduction or promotional offer.

Early repayment charge / early settlement charge

A charge that may apply when some or all of borrowing is repaid ahead of schedule. The agreement sets out any conditions and limits.

Eligibility / lender criteria

The requirements a provider sets for an application. A calculated repayment does not show that an applicant qualifies.

Estimate / illustration / projection

A result based on stated inputs and assumptions, not a promise of what will happen or a provider’s offer.

Financial Conduct Authority (FCA) / authorised and regulated

The UK financial-services regulator named in the site footer. Authorisation gives a firm permission for specified activities; regulation means it must follow the applicable rules.

Fixed rate / deal period

A fixed rate stays unchanged for an agreed period. That period may be shorter than the whole loan term.

HP (hire purchase)

Vehicle finance under which you hire a car while making payments and normally become its owner after all required payments and any purchase fee are paid.

Insurance

Cover bought for specified losses or events, subject to the policy’s conditions. Its price is not automatically included here.

Interest / interest rate

Interest is a charge for borrowing or a return paid on savings. The rate expresses it as a percentage over a stated period.

Lender / provider

The organisation supplying a loan or financial product and setting its terms.

Methodology

The calculation method, steps and assumptions behind an estimate.

Mileage limit / excess mileage

An agreed distance allowance and any driving above it. Charges can apply under a vehicle agreement, particularly when returning the car.

Mortgage / secured borrowing / security

A loan backed by an asset such as property. Security is the asset a lender may use to recover unpaid borrowing through the applicable legal process.

Option-to-purchase / documentation fee

An agreement-specific charge for taking ownership or processing paperwork. The calculator does not include it.

Payment holiday

An agreed temporary pause or reduction in payments. It can affect the balance and cost and is not included here.

Payment schedule / equal monthly intervals

The planned timing and number of repayments. Here each payment is one equal monthly period apart, beginning one month after borrowing.

PCP (personal contract purchase)

Vehicle finance with regular payments and an optional larger final payment to own the vehicle, subject to the agreement’s terms. Returning or replacing it follows separate conditions.

Quote / finance offer

Proposed prices and conditions from a provider. It is different from an illustration and may still depend on checks or conditions.

Repayment / monthly payment

Money paid back to a lender. A capital-and-interest payment covers interest and reduces the amount borrowed. An interest-only payment does not reduce it.

Rounding / unrounded

Shortening a number for display. An unrounded calculation keeps the more precise value when working out totals.

Term / repayment period

The length of time over which the calculation runs. For borrowing, it is the planned repayment period, not necessarily the length of an introductory rate deal.

Total interest

All the interest in the calculation, excluding the original loan and any separately stated fees.

Total repayable / total payable

The combined amounts counted by this tool. Read the results explanation to see whether fees, deposits or a final capital payment are included.

Twelfth root / power

A twelfth root is a number that gives the original value when multiplied by itself 12 times. A power describes repeated multiplication or its inverse. These operations convert the annual rate and account for payment timing in the formula.

Upfront fee / upfront payment

Money paid at the start instead of added to the loan or paid at the end.

Frequently asked questions