Car FinanceCalculator

Ever struggled to figure out how car finance is calculated? Try our car finance payment calculator below, if you’re asking yourself “how much will my car payment be?”. We’ve included helpful things such as how much interest you’ll be paying, how much your car payments will be each month, and the APR on your car finance.

Car Finance Repayment Calculator

to spend on your car


Update Rate

Representative Example

Fixed interest rate

payments of


Total cost of credit


Total payable


For illustration purposes only. The rate
and budget you may be offered will be based
on your individual circumstances.
This is not an offer or a quote for finance.
Carmoola Limited is pending authorisation from the Financial Conduct Authority.

UK car finance loan calculator

Before you take out a car loan, it’s important to check out how much your car loan payments might be, so you can get an idea on your budget. But how to calculate car loan payments? Well, we know a lot about car finance, but we think the formula is pretty complicated. So we thought we’d build you an auto loan calculator, so you can see exactly how much you might be spending each month if you take a car loan. This calculator is perfect for HP or Hire Purchase agreements.

How to calculate car finance repayments

Depending on how much you want to borrow, it will be difficult to know how much your car finance payments will be, so that’s definitely a good first step! Although, without knowing how to calculate car loan interest, you may also find it tricky. Usually on car finance agreements, interest is calculated on a flat annual rate, but your interest rate will depend on your circumstances and affordability. Your monthly payments will also depend on whether you take your loan for a longer or shorter period of time. The most common lengths for car finance agreements are: 12 months, 24 months, 36 months, 48 months and 60 months. Some lenders offer a longer term than this, sometimes up to 84 months, but you have to consider if you’d want to keep a car for this long or not!

How much are car loan rates usually?

The rate you will be offered may not be the same as your friend or family member. This is because each lender has some specific criteria that looks at your individual financial circumstances. Car finance rates usually range between 6% and 30% APR. You can use our car finance interest rate calculator above to work out exactly what rate you’re paying!

Auto loan rates can change, but not so much as you’d notice a big difference. For example, if you apply for a car loan in January, decide not to take it and apply again in February, the loan rates may have changed slightly, but most likely not more than a percent or two. The reason you may see a big difference in the rate you’re offered, would be that your financial situation has changed - for better or for worse.

How to use our vehicle finance calculator

When you’re looking at how to work out car finance on a calculator such as this, it’s important to note that the numbers you’re seeing are subject to change, and do not represent a quote or offer. They are for illustrative purposes only, for you to play with how to calculate car finance payments.

To get a better idea of how much your car finance payment should be, you will need to use Carmoola to find out your budget. The process is super easy, and all you’ll need is a form of photo ID - we prefer to see your driving licence. Everything is handled online, so you don’t need to be finding any paperwork from under your bed, or in the top top cupboard in the hall.

How does Carmoola work?

Get the app and find out your budget in under 3 minutes

Get the app and find out your budget in under 3 minutes

Buy any car from anywhere, with your Carmoola card

Buy any car from anywhere, with your Carmoola card

Increase, decrease or pause your payments at any time

Increase, decrease or pause your payments at any time

You deserve an upgrade on that old banger

Popular car finance calculator questions

What does APR mean?

The annual percentage rate (APR) is the annual rate charged for borrowing money. This rate can vary based on your individual credit profile and affordability. 

Where can I get a quote?

Carmoola is launching this Summer 2021 😁 so you'll be able to download the app and get a personalised quote in minutes. You don't need any documents to get a quote, it all happens in the app.

What is a normal APR?

Most car loans are available between 6% and 30% APR, depending on your credit profile.

Are there any other costs to consider?

There may be other small costs to consider with some car finance loans, however with Carmoola, there are no admin fees or set up costs. The only extra you'll need to pay is £1 at the end of your agreement to transfer the ownership of the car to you (legally). This is often referred to as an Option to Purchase Fee.

What's the difference with APR and Interest Rate?

The interest rate is the cost of borrowing the total loan amount, however the APR includes other costs you'll be required to pay during the agreement. The APR is almost always higher than the interest rate. With Carmoola, there are no hidden fees, so the APR and the Interest Rate are the same.