Car Loan Calculator

Enter the car price, your deposit amount, the annual interest rate, and the loan term in months. The calculator applies the standard loan formula to give your exact monthly payment. Adding a balloon payment (optional) reduces monthly instalments but leaves a larger final payment.

A balloon payment (common in PCP finance) is a large lump sum due at the end of the loan term. It reduces your monthly payments during the term but means you must either pay the balloon, trade in the car, or refinance at the end.

In the UK, typical car finance rates in 2025 range from around 6–12% APR for personal contract purchase (PCP) and hire purchase (HP). Credit score, deposit size, and term length all affect the rate offered. Rates in the USA range from roughly 5–10% for new cars.

Yes — a larger deposit reduces the amount you borrow, lowering both monthly payments and total interest paid. It also reduces the loan-to-value ratio, which can help you qualify for a lower interest rate.

LTV (Loan-to-Value) is the percentage of the car's value you are borrowing. For example, a £2,000 deposit on a £20,000 car gives an 90% LTV. Lenders generally prefer LTVs below 80–85%, as it reduces their risk if the car's value falls.