Car Finance Calculator

How to use this car finance calculator

Enter the vehicle price, your deposit, the APR and the agreement term in months. The monthly payment, total interest, total amount payable and a year-by-year balance chart update instantly.

How the numbers work

• Amount financed = vehicle price − deposit.
• Monthly payment uses the standard amortisation formula on the amount financed.
• Total interest = total of all payments − amount financed.

Estimates use standard formulas. Your actual APR depends on your credit profile, the lender and the term, and fees will add to the total — confirm the final figures with your lender or dealer.

Frequently Asked Questions

How is my monthly car payment calculated?

The amount financed (vehicle price minus deposit) is amortised over the term using the standard formula: M = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where r is the monthly rate (APR ÷ 12) and n is the number of months.

What is the difference between HP and PCP?

With Hire Purchase (HP) you pay off the full balance in equal monthly instalments and own the car at the end. With Personal Contract Purchase (PCP) you pay lower monthly amounts plus an optional final balloon payment to keep the car. This calculator models a straightforward HP-style agreement.

How much deposit should I put down?

A larger deposit lowers the amount financed, your monthly payment and the total interest you pay. Many dealers ask for around 10% of the price, but paying more reduces your overall cost.

What is APR and why does it matter?

APR (Annual Percentage Rate) is the standardised cost of borrowing, including interest and most compulsory fees. It lets you compare finance deals on a like-for-like basis — a lower APR means a cheaper agreement.

Does this include fees or optional extras?

No. This calculates the interest on the amount financed only. Documentation fees, an option-to-purchase fee, road tax, insurance and any add-ons are not included and will add to your true cost.