A very clever car finance calculator

Not sure what your monthly repayments might be? Our calculator will estimate how much interest you'll be paying and how much your payments might be each month.

How do I use the car finance calculator?

To calculate your monthly loan repayments, simply enter the amount you want to borrow, the desired contract length and your APR. The numbers in our HP car finance calculator are subject to change and do not represent a quote or offer. They are for illustrative purposes only, to help you understand how to calculate car finance payments. Not sure where to start? Why not click 'Not too sure?' and answer a few questions to get your started.

To get a better idea of how much your car finance payment would be, you can download our app and get your budget. Everything is handled online, the process is super easy, and all you need is your driving licence.

Affordability calculator

Calculate your disposable income

Monthly income after tax

This is the amount you get paid into your account each month

How much do you spend each month on...

Rent or mortgage

Please include your main housing cost here, for example your monthly mortgage or rent payment

Utilities

Items you should include are: Council tax, gas, electricity and water, home insurance, media (e.g. TV, mobile phone, broadband)

Food

Include an estimate of what you spend on food each month here

Childcare

Childcare costs can vary from one household to the next, so don't forget to add yours in here. If you don't have childcare costs, just type 0

Commuting and car

Items you should include are: Commuting costs, car insurance, car running costs (e.g. MOT, servicing, road tax)

Credit commitments

Do you have any personal loans, credit cards or other credit commitments each month? Add them here

Your buffer

Give yourself some wriggle room to account for unplanned costs, and other things you like to do such as eating out, holidays and other purchases

Hit calculate to see your estimated monthly disposable income

Your Monthly Disposable Income

Now that you know what you can afford, use our car finance calculator to see how much you can spend on your car

The use of this Affordability Calculator to determine your disposable income is not a guarantee of the availability of credit facilities from Carmoola

Step 1: Your monthly income

How much do you earn each month? Is it a regular amount? If not, try to average out the past 6 months.

Step 2: Your monthly outgoings

How much do you spend each month? This amount should be your individual monthly spending on the following:

Housing (i.e. rent or mortgage)
Utilities and other bills (i.e. council tax, gas, electricity, water, home insurance, broadband, TV, mobile phone)
Food
Childcare
Commuting and car costs (i.e. commuting costs, car insurance, MOT, servicing, road tax)
Your monthly credit commitments (i.e. loans, credit cards)

Step 3: Calculate your monthly disposable income

Now you've got your monthly income and monthly spend, you can deduct the spend
from the income to see roughly what your monthly disposable income might be. For example, if you earn £1,500 per month, and you spend £1,000 per month, your disposable income would be £500.

When calculating your disposable income, you should always allow yourself a little buffer for any unplanned events or activities to ensure that you’ll be able to afford your monthly car loan repayments.

Step 4: Investigate your credit history

There's loads of free tools out there where you can find out more about your credit score. We really like Credit Karma, as they also give you cool tips on how to improve your credit score! If you're not familiar, you can start to get up close and personal with your score, and this could help you understand what sort of rate you might be offered by car finance companies.

Step 5: Calculator time!

Now you have everything to use our hire purchase car finance calculator to see what sort of budget you could be working with, and how much it might cost to finance a used car. Don't forget, you may have some savings or an old car to part-exchange as part of the purchase.

Step 6: Get an accurate budget on Carmoola

If you're keen to upgrade your car, then you may want to get a budget for real! It takes 60 seconds in the app, and there's no paperwork or faff to worry about.

STEP 1

Get a budget in 60 seconds

In a few questions, find out how much you can spend on your car

Step 2

Buy your car from anywhere

Pay swiftly online with your card, or by bank transfer at the showroom

Step 3

Hit the road and pay monthly

Take full control of your account in the Carmoola app

“Such a simple way to get car finance and at a good rate too. Easy to use app with step by step process. Love the finance calculator, which allows you to adjust the amounts and see the payments instantly. Would definitely recommend!”

Simon.

“Easy to use and to get a budget with their online calculator! The best part is the flexibility, you can choose how much within your allocated budget and for how long to repay. Will defo use again in the future. *****”

Dean

“Absolutely amazing service, super quick to respond and it couldn’t have been easier, I would 100% recommend Carmoola to anyone!”

Joanne

“Not just a normal car Finance company!! Very fast and efficient and they make you feel like a valued family member, lots of unexpected after sales benefits that have been very much welcomed and appreciated too!!”

Burrow

“Incredible experience! Omg! The way forward in car finance. I’d use these guys again and thoroughly recommend them. 🚘”

Richard

The Difference Between PCP vs HP Explained

Car Finance

HP vs PCP: Which is right for me?

HP vs PCP is the big debate in car finance. They’re two of the most popular ways to spread the cost of buying a new or used car and have many...

7 Min Read

Understanding Your Hire Purchase Agreement

Car Finance

How does Hire Purchase finance work?

Considering financing a car with a Hire Purchase (HP) agreement? Check out our guide to all things HP to help you decide whether it’s the right...

8 Min Read

Car Finance

What is car finance and how does it work?

At first glance, car finance can look complicated. With so many different types of loan available and a sea of acronyms to navigate, it can feel like...

11 Min Read

FAQs About Calculating Car Finance

Check below for the answers to some of our most frequently asked questions, related to our Hire Purchase car finance calculator. Got more questions? Check out our FAQs page 👍

How does the car finance calculator work?

Our calculator uses a number of variables to work out your result including the amount you’d like to spend on your car, the length of the agreement and the APR applied to the car finance. It uses these figures to help illustrate an example of what monthly repayments on this loan example might be.

How are interest rates calculated?

Each lender has specific criteria that looks at your individual financial circumstances and calculates the interest rate based on these details. Car finance rates usually range between 6% and 30% APR. Car loan rates are subject to change.

What is a good APR for car finance?

Car finance lenders determine the APR they can offer you, based on your individual credit profile. A good APR for one person, may be a terrible APR for another! To find out what APR you would get, why not answer a few quick questions on Carmoola? We only run a soft credit search when you do this, so there's no impact on your credit score just to find out.

Does paying a deposit make a difference to my monthly payments?

Yes! Here's an example to help you understand how it works. Let's say you're buying a car that costs £10,000. Some lenders such as Carmoola will be able to help you borrow the whole £10,000 if you want to. However, if you decide to add a small deposit, let's say £2,000, then you'd only need to borrow £8,000 to buy the car. Borrowing less, means your monthly payments will be less, and you'll pay less interest overall.

Are interest rates fixed?

When you take out a Hire Purchase car finance agreement, your APR is set at the beginning and is fixed throughout the term you choose.

A very clever car finance calculator

How do I use the car finance calculator?

How to calculate what I can afford to spend on my car? 💸