Car finance calculator - calculate car loan costs
Our calculator gives you an idea of how much your monthly repayments are likely to be, plus the overall interest cost, if you take out a car loan. While it doesn’t cover personal contract purchase (PCP) or hire purchase (HP), the calculator provides a handy figure you can use to compare when you’re exploring your options.
See loans available to you
- Find loans without impacting your credit score
- Understand chance of approval before applying
See loans available to you
- Find loans without impacting your credit score
- Understand chance of approval before applying
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Our calculator can help you work out what your monthly repayments could be, based on what you want to borrow.
How to use our car loan calculator
Before you start, it’s worth knowing that this calculator will show you the results for a personal loan, but it won’t help with costs for personal contract purchase (PCP) or hire purchase (HP). But if you’re considering these car finance options, it will give you a handy figure to compare so you can easily see if you’d be better off with a personal loan.
You can work out how much you can borrow to pay for your new set of wheels, based on what you can afford each month. Or, if you have an idea of how much your new car will cost, you can use the calculator to see how much your monthly payments would be, whether you’re buying a new or a used car.
- Not sure if a loan is right for you? Explore car finance options
To see how much your car loan monthly repayments will be:
- Make sure you’re on the ‘What are my repayments?’ tab.
- Enter the amount you want to borrow or use the slider.
- Decide how long you want to take to repay. Just select the number of years.
- The average APR (annual percentage rate) is shown, but ideally you should adjust this to whether you have a good or bad credit rating to get a more accurate result. If you have a poor credit score, you’ll typically have to pay a higher interest rate.
- Check your result. You’ll be able to see how much your monthly repayments will be and how much you’ll pay overall in interest.
- If you want to, you can change the variables to see what the effect is if you pay back your loan earlier than planned or stretch the loan over a longer period. You can also see how much more your payments will cost if you have to pay a higher interest rate.
When you’re working out how long you want to take to repay the loan, think about how long you’re likely to keep the car. If it’s second hand and coming to the end of its life, you won’t want to be repaying a loan for a car that’s on the scrap heap.
To see how much you can borrow:
- Select the ‘What can I borrow?’ tab.
- Enter the amount you can afford to repay every month or use the slider.
- Select the number of years you want to take to pay back the car loan.
- The average APR is shown but you can change it depending on if you have a good or bad credit rating. If you have a poor credit score, you’ll typically have to pay a higher APR (more interest).
- Check your result. You’ll be able to see what you could borrow, plus what you’re likely to pay in total interest.
- If you want to, you can change some of the variables to see what happens to the totals if, for example, you pay a little more or less each month.
Check your eligibility
You can then see how likely you are to be accepted for the loan. Simply select the ‘Check your eligibility’ button, enter a few personal details and you’ll be able to see loans that you’re likely to be accepted for. This will also show you the likely APR (the interest rate) you’ll have to pay. Don’t worry, this eligibility check won’t impact your credit score.
If you’re happy with one of the loans you’re likely to be eligible for, you can make a full application, which will show up on your credit record.
But before you go ahead, think carefully about whether you can afford to pay back the loan, regularly and on time, for the entire length of the deal.
How does the car finance calculator work?
The calculator uses different variables to work out the results, including:
- Amount borrowed
- Interest rate (APR)
- Length of the loan
- Monthly payments.
Just change any of the variables to see what difference it makes.
The car loan payment calculator will give you an approximate idea of what someone with a particular credit rating will be offered in interest rate and monthly repayments.
However, when you apply for a loan, this will be based entirely on your circumstances, personal credit rating and the criteria of the particular loan provider. That means your repayments may vary from the figure the calculator provides.
You can check your credit score for free to help you get a more accurate idea of what APR you’re likely to pay on your loan.
Compare car loans
There are various ways to finance the purchase of a car and it’s important to choose the one that’s right for you. Options include:
With an unsecured personal loan, you own the car outright from the start. You pay back a fixed monthly amount over a fixed period and the loan is paid off when the final payment is made. This is what the calculator above is for.
With hire purchase you don’t own the car until the entire amount has been paid off. You’ll typically put down an initial deposit, then pay off the remaining value of the car in fixed monthly instalments. Once all the repayments have been made, you need to pay a small fee to buy the car outright (do check how much this will be before signing the deal), after which you become the legal owner.
Finance is secured against the car, so if you don’t keep up with the repayments your car may be repossessed.
Personal Contract Purchase (PCP)
PCP is another type of loan where you don’t own the car until the entire amount has been paid off. But where it differs from other types of finance is that you don’t actually have to pay off the total value of the car. You make set repayments over an agreed period, then at the end you can hand the car back, part-exchange it for a new one or make a final ‘balloon’ payment to clear the remaining debt and keep the car.
Balloon payments can be quite large and depend on the mileage you’ve done. You don’t own the car until this final payment is made.
Be aware that with PCP the loan is secured against the car. This means if you don’t keep up with the monthly repayments, you could lose the car.
All of these finance options have different pros and cons, so you’ll need to weigh up what’s best for you. We can help you see how much you’re likely to pay for a personal car loan. This will let you compare the cost of a loan with any deals you’re offered by a car dealer or manufacturer.
Frequently asked questions
How much can I borrow to buy a car?
How much you can borrow will depend on your personal circumstances, including your income, your outgoings and what the lender thinks you can afford. Lenders will also take into account other debts you have, and your previous history of managing money, by checking your credit record.
Our calculator can give you an idea of how much you can borrow, based on how much you think you’ll be able to repay every month and your credit rating.
How much will my monthly car loan repayments be?
The cost of your repayments will depend on how much you borrow, how long for and the rate of interest you’ll be charged. It may also depend on whether you can part-exchange your current vehicle, which would mean you’d need to borrow less.
Use the ‘What are my repayments?’ tab on our car finance calculator to see what you could expect to pay. You’re likely to have to pay a higher rate of interest – meaning higher monthly payments – if you have a bad credit score.
You can also use the calculator to see how your monthly payments will increase or decrease if you pay over a longer or shorter period, or if you have to pay a higher or lower interest rate.
Can I get a car loan if I am self-employed?
Yes, but you might have fewer options to choose from, so it’s a good idea to get your finances in shape before you apply for a car loan. Check your credit record to make sure it’s correct and shows a true picture of your finances.
As a self-employed borrower, you may need your annual accounts and other financial records, such as bank statements and tax returns, to prove to a lender that you’re financially capable of paying back a loan.
Am I eligible for a car loan?
The quickest way to see if you can get finance for your next car is to use our loan eligibility checker to find out. You have to be aged over 18 and a UK resident to be eligible for a loan.
Can I get a car loan with bad credit?
You might be able to get a car loan with bad credit, but you’ll probably have to pay a higher rate of interest as you’ll be seen as a bigger risk.
Your loan will cost you more, so make sure you can afford to repay it. If you don’t, you’ll end up damaging your credit score even further and it will be harder to borrow money or get any form of credit in the future.
If you continually miss repayments, you might be issued with a default notice, which could result in your car being repossessed. A debt collection agency or county court judgement (CCJ) could be used to recover any money owed on your car finance.
Do I have to put down a deposit with a car loan?
One of the advantages of a car loan is that there’s no need to put down a big deposit. But some dealers may ask you to make a small payment to reserve a vehicle while you sort out your car finance.
Compare the Market Limited acts as a credit broker, not a lender. To apply, you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.