Car Loan Calculator guide
Car Loan Calculator: Hire Purchase and Car Finance Payments
Use our car loan calculator to work out monthly payments, total interest and the total cost of a car on hire purchase or a personal loan.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
Most new and used cars in the UK are bought on finance. Our Car Loan Calculator shows the monthly payment and what the car really costs.
How to use the calculator (Car Loan Calculator)
- Enter the car price.
- Enter your deposit and any part-exchange value.
- Enter the APR, the term and any fees.
How it works
The amount you borrow is the price minus your deposit and part-exchange. The calculator spreads it, plus interest, over equal monthly payments.
A worked example
With the calculator's default settings, an £18,000 car with a £2,000 deposit, borrowing £16,000 at 8.9% APR over 48 months:
- Monthly payment: £394.80
- Total interest: £2,950
- Total cost of the car: £20,960
HP, PCP or a personal loan?
| Type | How it works |
|---|---|
| Hire purchase (HP) | Fixed monthly payments; you own the car at the end |
| PCP | Lower payments with a big optional final payment |
| Personal loan | You own the car from day one |
| Leasing (PCH) | You rent the car and hand it back |
Frequently asked questions
Can I end an HP agreement early?
Yes. You can settle early with a rebate of some interest, or hand the car back once you've paid half the total amount payable (voluntary termination).
Is a longer term better?
It lowers the monthly payment but increases the total interest.
For PCP deals, see our PCP Calculator, and for leasing, our Car Lease Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.