Car Finance Calculator

Estimate the monthly payment, total payable and cost of credit for a car loan, hire purchase or PCP-style deal.

Free, no sign-up
Runs in your browser
Updated 4 Nov 2026

Type of finance

Car price

Deposit (incl. part-exchange)

APR

% APR

Term

months

Final balloon payment (GMFV)

Use the figure on your quote. The lender sets it from the car's expected future value and your mileage limit.

Fees not included in the APR (optional)

For example an option-to-purchase fee. Added to the total payable.

Estimated monthly payment

Amount borrowed
Total of monthly payments
Final payment
Total payable (incl. deposit)
Interest and charges

Illustrative only: not a quote, an offer of finance or advice. Real quotes depend on the lender, your credit record and fees.

Compare terms at % APR

Term	Monthly	Interest	Total payable

What you owe each year

Year	Paid	Of which interest	Still owed

For PCP the amount still owed at the end is the final balloon payment.

How to use the car finance calculator

1 Choose HP or loan, or PCP-style if there is a final balloon payment.
2 Enter the car price and your deposit, including any part-exchange.
3 Enter the APR and the term in months. For PCP, add the optional final payment (GMFV).
4 Compare the monthly payment, total payable and interest, and see how a different term changes them.

Worked example

£18,000 car, £2,000 deposit, 9.9% APR, 4 years

Amount borrowed: £16,000
HP / loan: 48 months
PCP-style: £7,000 final payment

Monthly rate = 1.099^(1/12) − 1 = 0.79%

= HP about £401.80 a month (£3,286 interest). PCP-style about £281.29 a month plus £7,000 at the end (£4,502 interest)

Assumptions and limitations

Illustrative only. This is not a quote, an offer of credit or financial advice, and we do not arrange finance.
APR is treated as an annual rate compounded monthly, the usual UK basis. Real quotes include fees and lender rounding, so they will differ slightly.
PCP deals also set annual mileage limits and excess mileage charges, and the final payment is set by the lender.
Any finance is subject to status, affordability checks and the lender's terms. Check the representative example on any real quote.

HP, loan or PCP: what the numbers mean

With hire purchase and a personal loan you repay the whole amount over the term, so the monthly payment is higher but you own the car at the end. With PCP part of the amount is deferred to a final balloon payment, so monthly payments are lower; at the end you can pay the balloon to keep the car, hand it back or part-exchange it.

Because the balloon is borrowed for the whole term, PCP usually costs more interest overall for the same APR. The calculator shows the total payable for each option so you can compare like for like.

APR, term and deposit

A longer term lowers the monthly payment but increases the total interest. A bigger deposit reduces both. The term comparison table shows the trade-off at your APR.

Always compare deals on total payable and APR, not the monthly figure alone, and make sure the payment leaves room for running costs. The affordability calculator works this out from your budget.

Check the car before you sign

Outstanding finance stays with the car, not the seller. Before buying privately, run a finance check as well as the free MOT and tax check.

Official guidance and sources

Run a free vehicle check

Buying with finance? Check the car's MOT, tax and history first.

MOT history, tax status & DVLA data · No sign-up

All free tools

Car Affordability Calculator Work backwards from your monthly budget to the finance payment and car price that fit after running costs. Car Running Cost Calculator Fuel, tax, MOT, servicing, insurance, parking and finance added up per month, per year and per mile. Car Depreciation Calculator Low, base and high estimates of a car's future value from price, age, mileage and type. Not a valuation.

Frequently Asked Questions

The amount borrowed (price minus deposit) is spread over the term with interest added each month. For PCP, the final balloon payment is set aside, so you pay interest on it but only repay the rest monthly. The calculator uses the standard annuity formula with a monthly rate derived from the APR.

With HP you repay the full amount over the term and own the car after the last payment. With PCP, monthly payments are lower because a large final payment is left until the end; you choose whether to pay it and keep the car, or return the car instead.

You are borrowing the balloon amount for the whole term without paying it down, so interest keeps building on it. For the same APR and term, PCP usually has a higher total cost of credit than HP.

It should be close for the same APR and term, but real quotes include fees, different rounding and sometimes a different way of applying the deposit. Use it to check a quote or compare deals, not as an offer of finance.

No. The calculator is an illustration based on the figures you enter. It does not assess affordability or recommend a product. MoneyHelper, the free government-backed service, has impartial guides to car finance.

Use the APR on the quote you have been given. If you are just exploring, try a few rates to see how much they change the payment and total cost.

Figures and guidance last checked 4 November 2026. An independent free tool from Free Car Tax MOT Check; not affiliated with DVLA, DVSA or GOV.UK. Results are estimates to help you plan, not financial, legal or mechanical advice.