Car Loan Calculator UK
Our free UK car loan calculator estimates your monthly repayments for any car finance amount. Enter the vehicle price, deposit, interest rate, and term to see your exact monthly payment and total cost of borrowing.
Monthly Payment
Total Interest
£2,921
Total Cost
£27,921
This estimate includes capital and interest repayments. It does not include optional gap insurance, maintenance plans, or dealer fees.
How Monthly UK Car Loan Payments Are Calculated
This calculator applies the standard amortisation formula to car finance: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the financed amount (vehicle price minus deposit), r is the monthly interest rate, and n is the term in months. Inputs: vehicle price, deposit, annual interest rate, and loan term. Outputs: monthly payment, total cost of credit, and total amount repayable.
Frequently Asked Questions
What types of car finance are available in the UK?
The main types of car finance in the UK are Personal Contract Purchase (PCP), Hire Purchase (HP), and personal loans. PCP involves lower monthly payments with a large optional final payment to own the car. HP means you own the car at the end of all payments. A personal loan lets you buy outright and often gives more flexibility.
What is a typical car loan interest rate in the UK in 2026?
Car finance interest rates in the UK in 2026 typically range from approximately 5% APR for buyers with excellent credit to 15–25% APR for those with a limited credit history. Manufacturer 0% deals are periodically available on new cars. Always compare the total cost of finance, not just the monthly payment.
How much should I put down as a deposit on a car in the UK?
A deposit of 10–20% of the vehicle price is typically recommended for UK car finance. A larger deposit reduces the amount borrowed, lowering monthly repayments and total interest paid. Some lenders require a minimum deposit of 10% for PCP or HP agreements.
Can I repay my car finance early in the UK?
Yes. Under the UK Consumer Credit Act 1974, you have the right to settle a regulated car finance agreement early and receive a rebate on future interest. Most agreements allow you to pay off up to 8% of the outstanding balance before an early repayment charge may apply. Check your specific agreement terms.
Is car finance or a personal loan better for buying a car in the UK?
A personal loan typically offers more flexibility — you own the car outright and can sell it at any time. Car finance (HP or PCP) may have lower rates for newer vehicles but includes mileage restrictions and condition requirements. Compare the total cost of each option using our calculator before deciding.