Loan and car finance repayment calculator
Work out the monthly repayment, total interest and total amount repayable on a personal loan, hire purchase or PCP car finance deal.
Monthly payment
PCP figures are an estimate. Real agreements vary: the final payment is set by the lender, and if you hand the car back instead you may pay charges for going over the agreed mileage or for damage beyond fair wear and tear. Some deals also add fees, such as an option-to-purchase fee. Check your quote for the exact figures.
Show yearly repayment schedule
| Year | Paid | Interest | Capital | Balance left |
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How this calculator works
First it works out the amount you're borrowing: the loan amount or car price, minus any deposit or part exchange. It then finds the fixed monthly payment that pays off that amount, plus interest, by the end of the term.
UK lenders quote an annual percentage rate (APR), which is an annual rate with compounding built in. The calculator converts it to the matching monthly rate, so 12 months at that rate add up to the APR. Each month, interest is charged on the balance still owed, and the rest of your payment reduces the balance. Early on, more of each payment goes on interest; towards the end, more goes on paying off what you borrowed. The yearly schedule shows this split.
In PCP mode, part of the amount borrowed is left over as a final payment, sometimes called a balloon payment or guaranteed future value. Your monthly payments only cover the rest, plus interest on the whole balance, so they're lower. You then choose to pay the final amount to keep the car, or hand the car back instead (subject to the agreement's mileage and condition terms).
The calculator assumes a fixed rate, level monthly payments starting one month after you borrow, and no fees beyond what's already in the APR. Real quotes can differ by a few pounds because of rounding, fees added to the first or last payment, or a different first payment date.
APR vs flat rate
An APR includes compounding and most compulsory fees, and it's what UK lenders must show you, so it's the fairest way to compare deals. A flat rate is worked out on the original amount borrowed for the whole term, even though you pay the balance down each month. That makes a flat rate look much lower than the APR for the same deal: a 5% flat rate over 4 years is roughly a 9.7% APR. For level-payment loans the results here show the equivalent flat rate too, so you can compare a flat-rate quote like for like.
Tips for comparing loans and car finance
- Compare the total repayable, not just the monthly payment. A longer term lowers the monthly cost but usually means paying more interest overall.
- Representative APR isn't guaranteed. At least 51% of successful applicants must get the advertised rate. Others may be offered a higher one, so try the calculator with a few rates.
- Check for fees. Arrangement, admin or option-to-purchase fees add to the cost. Ask for the total amount payable in writing.
- Know your early repayment rights. You can repay a regulated loan early, in full or in part. The lender can charge a capped early settlement fee.
- With PCP, think about mileage. Set a realistic annual mileage, because excess mileage charges apply if you hand the car back.
Frequently asked questions
What's the difference between hire purchase (HP) and PCP?
With HP, your monthly payments cover the whole amount borrowed, and the car is yours after the last payment. With PCP, a large final payment is left at the end, so monthly payments are lower. At the end you can pay the final amount and keep the car, hand it back, or part exchange it. Over the whole term, PCP often costs more in interest because you're paying interest on the final amount too.
Why doesn't my quote match exactly?
Lenders may round each payment, add fees to the first or last month, or start payments on a date other than one month after you borrow. The calculator uses the APR as an estimate of the interest rate, and an APR can include some fees, so treat small differences as normal.
What happens with 0% finance?
At 0% APR there's no interest, so the amount borrowed (minus any final payment) is simply divided by the number of months. Check whether the price has been raised to cover the cost of the finance, or whether a cash buyer would get a discount.
Can I hand a car back early?
With HP and PCP agreements regulated by the Consumer Credit Act, you usually have the right to end the agreement once you've paid half the total amount payable, known as voluntary termination. Charges can apply if the car isn't in good condition. Check your own agreement for the details.
Does this work for credit cards or mortgages?
It's designed for fixed-rate loans with level monthly payments. Credit cards have variable payments, so it doesn't suit them. For mortgages, try our mortgage overpayment calculator.
Is this financial advice?
No. It's an illustration based on the numbers you enter, and it isn't a recommendation to take out any loan or finance deal. Your lender's quote and agreement show the real figures. For free, impartial help with borrowing, try MoneyHelper.
Results are estimates for illustration only and aren't financial advice. Calculations assume a fixed rate, level monthly payments and no fees beyond those included in the APR.