WorthChex › Car Finance Calculator

Browser-based calculation

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Vehicle price

Deposit

Part-exchange contribution

Finance / other fees

APR assumption

Term

Optional final payment / balloon

Use a final payment only for a finance structure that leaves one. Some PCP-style agreements have a final optional payment based on the contract's projected future value.

CAR FINANCE MODEL

How this calculator works

The calculator uses a standard amortisation model with a fixed APR assumption. Optional fees are added to the amount financed and an optional final payment can be modelled. It is designed for comparison, not as a lender quote.

Source: GOV.UK vehicle-buying guidance

Read the full WorthChex methodology →

UNDERSTANDING CAR FINANCE

Compare the monthly payment with the total cost.

A car-finance payment is shaped by the amount financed, APR, term, deposit and any final payment or fees represented in the model. A lower monthly figure can simply mean the borrowing is spread over a longer period or a larger amount remains due later.

Deposit

A larger deposit reduces the amount borrowed, but committing all available cash to the car can reduce the household's emergency buffer.

Term

A longer term can reduce the monthly instalment while increasing the number of months on which interest is charged.

Final payment

If a final payment is entered, treat it as a real future cash requirement. The monthly number alone does not describe the whole finance commitment.

Worked example

If £20,000 is financed at a fixed 8% APR over 5 years with no fee or final payment, a standard monthly-amortisation model gives a payment of roughly £405. The actual agreement may differ because finance products use their own contractual terms and charges.

MoneyHelper recommends comparing APR, total repayment, penalties and monthly cost when assessing borrowing. MoneyHelper: do you need to borrow money? →

REVIEWED SEPTEMBER 2026

Do not compare cars on the monthly payment alone.

When comparing a finance offer, keep the deposit, amount financed, APR, term, fees and total amount payable visible. Also budget for insurance, fuel, servicing, repairs, tax where applicable and depreciation; the finance calculation covers only the assumptions entered.

Monthly payment is only one part of the car's cost.

When comparing car finance, look at the vehicle price, deposit, APR, term, fees and any final payment together. A low monthly payment can be produced by a larger deposit, a longer term or a final payment, each of which changes the overall picture.

Amount financed

The purchase price is reduced by the deposit and part exchange, then any fee you choose to include is added to the modelled borrowing.

APR and term

The APR assumption determines the interest model while the term determines how many scheduled payments are used. Both materially affect total finance cost.

Final payment

A final payment reduces the regular payment in this model but leaves a larger amount due later. Real PCP contracts use product-specific future-value terms and conditions.

Example: on a £25,000 car with a £2,500 deposit, the starting balance is £22,500 before any modelled fees or final payment. Comparing a 36-month plan with a 60-month plan can show the trade-off between monthly payment and total finance cost.

Finance affordability is not the same as car affordability.

A finance payment is only one part of owning a car. Insurance, fuel, maintenance, tyres, servicing, parking, breakdown cover and unexpected repairs can all affect the real monthly budget.

Use the Affordability Calculator alongside this page when you want to test whether the finance payment fits after regular household spending. The two tools answer different questions.

Compare a finance quote with the cash alternative

Where you have enough cash, compare the modelled total paid under finance with the cash price and fees. The comparison is not a recommendation; it simply makes the borrowing cost explicit so you can evaluate the trade-off.

Car finance calculator FAQs

Is APR the same as the interest rate?

APR is a broader measure of borrowing cost and can incorporate fees depending on the product. Use the APR from the lender's actual illustration where available.

Does this model exactly reproduce PCP?

No. It can model a final payment, but real PCP agreements can have product-specific future-value calculations, mileage conditions, fees and other terms.

Should I include a part exchange?

Yes, when part of the vehicle cost is being covered by your existing car. Enter the contribution you expect to be credited against the purchase.

Why can the lender's figure differ?

The actual agreement can contain fees, payment timing, APR structure and contractual terms that are different from the simplified assumptions in this calculator.