Car Finance Calculator

Work out monthly payments on PCP, hire purchase or a car loan from the price, deposit, APR and term, with total interest and a yearly balance table.

Reviewed by Dany, RightSums team · Updated

Runs in your browser. Free, no sign-up.

car-travel · Daily life · UK & US & Canada

Choose the UK, US or Canada, then pick PCP, hire purchase or a standard car loan. Enter the cash price, your deposit or trade-in, the APR and the term in months. For PCP or a balloon loan, add the final payment. The calculator shows the monthly payment, the amount borrowed, total interest and total payable, with a table of interest, capital and balance for each year. UK APRs are effective annual rates under FCA rules, so the monthly rate is (1 + APR) to the power of 1/12, minus 1. US APRs are nominal, so it uses APR ÷ 12, and Canada uses APR ÷ 12 as well. Real quotes include fees and exact dates, so expect small differences.

Accepted inputs

  • Country (UK, US or Canada)
  • Finance type (PCP, hire purchase, loan or balloon loan)
  • Cash price
  • Deposit, part-exchange or trade-in
  • APR
  • Term in months
  • Optional final payment or balloon
  • Option-to-purchase fee (UK)

Outputs

  • Monthly payment
  • Amount borrowed
  • Total interest
  • Total payable
  • Year-by-year interest, capital and balance

How to use the Car Finance Calculator

  1. Choose your country and the type of finance, such as PCP, hire purchase or a car loan.
  2. Enter the cash price, your deposit or trade-in, the APR and the number of monthly payments.
  3. For PCP or a balloon loan, add the final payment, and in the UK any option-to-purchase fee.
  4. Read the monthly payment, total interest and total payable, then check the balance left at the end of each year.

Frequently asked questions

How are PCP payments calculated?

PCP payments cover the interest on the whole amount borrowed plus the drop in value down to the final payment. A £25,000 car with £2,500 down at 9.9% APR over 48 months and a £10,000 final payment costs £392.88 a month. Total interest is £6,358.30 if you pay the final amount to keep the car.

Is PCP or hire purchase cheaper?

HP has higher monthly payments but usually less interest, because you pay off the car as you go. On the same £25,000 car, £2,500 deposit, 9.9% APR and 48 months, HP costs £565.03 a month and £4,621.28 in interest. PCP is £392.88 a month but £6,358.30 in interest if you buy the car at the end.

How much is a $35,000 car loan a month?

A $35,000 car with $5,000 down, financed at 6.5% APR, costs $586.98 a month over 60 months or $504.30 over 72 months. The longer term cuts the payment but raises total interest from $5,219.07 to $6,309.45. In Canada, C$35,000 borrowed at 7.49% over 72 months is C$604.98 a month.

Why does the UK work out APR differently from the US?

In the UK the FCA defines APR as an effective annual rate, so the monthly rate is (1 + APR) to the power of 1/12, minus 1. US Truth in Lending APRs are nominal, so the monthly rate is APR ÷ 12. At 7% over 60 months on £20,000 that is £394.00 a month using the UK rule and £396.02 using the US rule.

Why is my lender's quote different from this calculator?

Lenders build in fees, the exact first payment date and rounding, and some add a small final fee. This calculator assumes equal monthly payments at the end of each month, with any final payment due alongside the last one. Expect a difference of a few pounds or dollars. Your lender's written quote is the figure that counts.

Sources

The rates and rules in this tool come from:

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