Auto Loan Calculator

Your monthly payment is what leaves your account each month until the car is paid off. Amount financed is the price minus your deposit and trade-in — that is the figure interest is charged on, which is why a bigger deposit lowers both the payment and the total cost. Total paid for the car adds your deposit and trade-in back on, so it is the real all-in figure to compare against the sticker price.

Why this one is different

Deposit and part-exchange are separate inputs, and each accepts a cash sum or a percentage of the screen price — the two ways a dealer actually quotes them. Amount financed is shown next to the monthly payment, so you can see how much of the car you are borrowing for rather than only what it costs per month.

Where the money goes

A longer term makes the payment look cheap and the car expensive

Dealers quote in monthly payments because stretching a loan from four years to seven can drop the monthly figure by a third. The interest, though, keeps accruing on a balance that shrinks far more slowly — so you pay noticeably more in total for exactly the same car.

Run the same price at two different terms here. If the shorter term is affordable, it is almost always the cheaper decision; if it is not, the honest signal is that the car is above budget.

How it works

A car loan is a fixed-rate amortising loan. The lender charges interest each month on the outstanding balance, and your fixed payment covers that interest first with the rest reducing the balance. This calculator subtracts your deposit and trade-in from the price to find the amount financed, then applies the standard amortisation formula.

How to use this calculator

Choose your currency.
Enter the vehicle price you have agreed.
Add your deposit and any trade-in value — each takes a cash amount or a % of the price, whichever the dealer quoted.
Set the APR and term with the sliders.
Read your monthly payment, plus total interest and total cost.

Formula

M = P · r(1+r)ⁿ ÷ ((1+r)ⁿ − 1)

P = price − deposit − trade-in, r = monthly rate (APR ÷ 12), n = number of monthly payments.

Example calculation

A £22,000 car with a £3,000 deposit at 7.9% over 5 years:

Amount financed = £19,000
Monthly payment ≈ £384
Total interest ≈ £4,061
Total paid for the car ≈ £26,061

Frequently asked questions

Does this cover PCP or lease deals?＋

No. This models a straightforward hire-purchase or personal loan where you own the car at the end. PCP deals defer a large balloon payment to the final month, which changes both the monthly figure and the total cost.

Should I take dealer finance or a personal loan?＋

Compare the APR on both, not the monthly payment. Dealer finance sometimes carries a manufacturer subsidy that beats a bank; often it does not. A personal loan also makes you a cash buyer, which can win a better price on the car itself.

Is a bigger deposit always better?＋

For the loan, yes — every unit of deposit is a unit you pay no interest on. The exception is if it drains an emergency fund and pushes you into more expensive short-term borrowing later.

What is the balloon payment on a PCP?＋

A large final payment representing the car’s guaranteed minimum future value, due only if you want to keep the car at the end. Monthly payments are lower because you are financing depreciation rather than the whole car. This calculator models a standard loan, so PCP figures will not match.

Should I finance through the dealer or a bank?＋

Dealer finance sometimes carries a manufacturer subsidy that beats any bank rate, particularly on new cars. Against that, a personal loan makes you a cash buyer, which can improve the price you negotiate. Compare the total cost of car plus finance, not the rates in isolation.

Does negative equity affect the calculation?＋

Yes, and it is common. If you still owe more on an existing car than it is worth, that shortfall is usually rolled into the new agreement, increasing the amount financed. Add it to the loan amount here rather than treating the new car’s price as the borrowing figure.