Car finance calculator - calculate car loan costs
Our car finance calculator gives you an idea of what your monthly repayments could be, plus the overall interest cost, if you take out a car loan. Use the calculator to compare car finance quotes when you’re exploring your options.
See loans available to you
- Find loans without affecting your credit score
- Understand your chances of approval before applying
See loans available to you
- Find loans without affecting your credit score
- Understand your chances of approval before applying
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How to use our car loan calculator
Thinking about a new set of wheels? Our car loan calculator can help you get an idea of what it might cost with a personal loan.
While it isn’t able to help with the costs for personal contract purchase (PCP) or hire purchase (HP), it can give you a handy figure to compare against those options, so you can easily see if a personal loan could work out better for you.
You can use the calculator to:
- Work out how much you can borrow based on what you can comfortably afford each month or,
- See how much your monthly payments would be (if you know how much your next car will cost).
1. See how much your car loan monthly repayments will be:
- Make sure you’re on the ‘What are my repayments?’ tab
- Put in the amount you want to borrow or use the slider
- Decide how long you want to pay it back
- You’ll see an average APR (annual percentage rate) but for a more realistic result, tweak this based on your credit rating. If you have a poor credit score, you’ll typically have to pay a higher interest rate
- Check your result. You’ll see the size of the monthly payment, plus the total interest over the life of the loan
- Want to play around with the numbers? Try shortening the loan term or stretching it out to see how it changes your payments. You can also look at the impact of a higher or lower interest rate.
When you’re weighing up different loan lengths, think about how long you’ll keep the car. If you take out a longer loan for an older second-hand model coming to the end of its life, do you really want to still be making repayments when it eventually gets scrapped?
2. See how much you can borrow
- Select the ‘What can I borrow?’ tab
- Put in how much you can afford to repay every month or use the slider
- Choose how many years you'd like to pay back the car loan
- You’ll see the average APR but feel free to tweak it depending on your 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 see what you could borrow, plus what you’re likely to pay in total interest
- You can change the numbers – for example, the size of your monthly payment – to see how it affects what you can borrow or how much interest you’d pay.
3. Check your eligibility
You can then find out how likely you are to be accepted for the loan.
- Simply select the ‘Check your eligibility’ button
- Enter a few personal details 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, double-check that you can comfortably manage the monthly repayments through to the end of the loan.
How does the car finance calculator work?
The car finance calculator uses different information to crunch the numbers for you, including:
- Amount borrowed
- Interest rate (APR)
- Length of the loan
- Monthly payments.
Just change any of these to see what difference it makes.
The car loan calculator will give you an approximate idea of what someone with a particular credit rating will be offered in interest rate and monthly repayments.
But when you apply for a loan, this will be based entirely on:
- Your circumstances
- Your personal credit rating
- The loan provider’s criteria
This means your repayments may vary from the figure the car finance calculator gives you.
Quick tipYou can check your credit score for free to help you get a more accurate idea of the APR you’re likely to pay on your loan. |
Compare car loans
You can pay for car finance in different ways, and it’s important to choose one that’s right for you. Your options include:
Personal loans
With an unsecured personal loan, you own the car outright from the start.
- Borrow a lump sum
- Pay it back in fixed monthly amounts over an agreed time
- Once the final payment is made, your loan is paid off.
You can use our car finance calculator above for this.
Learn more about personal loans
Hire purchase
With hire purchase (also known as HP), you don’t own the car until your final repayment. Usually, you’ll:
- Put down an initial deposit
- Repay the rest of the car’s value in fixed monthly instalments
- Once all repayments are made, you pay a small admin fee to buy the car outright
Make sure to check how much the final fee will be before signing the deal - it’s usually around £200.
Learn more about hire purchase
Bear in mindHire purchase finance is secured against the car. If you fall behind on payments, the lender could take back the car. |
Personal Contract Purchase (PCP)
PCP is another type of loan where you don’t own your vehicle until the debt has been repaid. But the difference is that you don’t have to pay off the full value of the car.
You make monthly repayments over an agreed period then – at the end of the agreement – you can either:
- 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.
A few things to keep in mind:
- Balloon payments can be pretty hefty – often thousands of pounds – and depend on the mileage you’ve done
- You don’t own the car until this final payment is made
- In the same way as HP, your car is used as security – miss payments and you could lose your car.
All 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 to buy a car will depend on your personal circumstances, including:
- Your income
- Your outgoings
- What the lender thinks you can afford
- Any other debts you have
- Your previous history of managing money (as shown on your credit record).
Our car finance 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 you take out a loan for
- The rate of interest 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 go up or down 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, you can usually get a car loan if you're self-employed. But you might have fewer options to choose from, so it’s a good idea to get your finances in shape before you apply. 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 to prove to a lender that you’re financially capable of repaying a loan. This means you might have to provide:
- Your annual accounts
- Other financial records, such as bank statements and tax returns.
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.
You must 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.