Car Loan Calculator
Free auto loan calculator — calculate car payments, total cost & interest
Put in the car's price, your deposit, the interest rate and the term, and this works out the monthly payment and what the finance adds to the total. It also handles a balloon payment at the end, the way PCP deals are structured, so you can see the real monthly cost of the way most new cars are actually bought.
Loan Details
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Amortisation Schedule
Annual breakdown of principal vs interest
| Year | Principal Paid | Interest Paid | Balance |
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PCP, HP and the balloon at the end
Car finance comes in two common shapes. With Hire Purchase you borrow the full price, pay it off in equal instalments, and own the car outright at the end. With a Personal Contract Purchase the monthly payments are lower, because you're only covering the car's expected loss of value rather than its whole price — but a large "balloon" payment waits at the end if you want to keep it, and you don't own the car until you pay it.
Lower monthly figures on a PCP can look tempting next to HP, so it's worth comparing the total you'll have paid by the time the car is genuinely yours, balloon included, rather than the monthly number alone. This calculator shows both so you can judge them on the same footing.
❓ Frequently Asked Questions
How do I calculate my monthly car finance payment? ▼
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.
What is a balloon payment on a car loan? ▼
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.
What is a good interest rate for a car loan in 2025? ▼
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.
Should I put down a larger deposit? ▼
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.
What is LTV on a car loan? ▼
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.
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