Auto Loan Calculator

United Kingdom rules and figures

• In a promotion, the representative APR is the rate the firm expects to offer, or better, on at least 51% of the agreements it writes from it. The label must say representative.
• Adverts that hint credit is open to people with restricted access, compare favourably, or offer an incentive to apply have to carry it.
• Consultation paper CP26/15 from the FCA asks if 51% is still the right threshold; the 51% test was in force on the check date.
• VAT in the tool's tax module is 20% at the standard rate, 5% at the reduced rate and 0% at the zero rate, and car prices in the UK are quoted with it included.
• Because only half of successful applicants must get the advertised APR or better, your own offer can carry a higher rate, so use the figure on your quote.

Sources: FCA Handbook: representative APR (glossary) (checked 2026-11-08); FCA Handbook: CONC 3 Financial promotions (checked 2026-11-08); FCA: CP26/15 Reviewing the financial promotions rules for consumer credit (checked 2026-11-08); GOV.UK: VAT rates (checked 2026-11-08)

How the auto loan calculator works

The amount financed is the price plus any fees, minus the deposit and the part-exchange value. It is paid back in equal monthly instalments, with interest charged each month at one twelfth of the yearly rate on the balance left. The VAT box starts empty because the price you see has VAT in it already.

financed = price + fees − deposit − part-exchange; instalment = financed × v × (1 + v)^months ÷ ((1 + v)^months − 1), v = rate ÷ 12

• The rate box is labelled Representative APR (%), which is the figure lenders must show in many adverts, and it is used as the loan rate.
• Everything starts blank except the term, which is 60 months. Type 0 as the rate for an interest-free offer.
• Total Cost is all instalments plus the deposit and the part-exchange value, so it includes interest and fees.
• The comparison tab recalculates the loan for 36, 48, 60, 72 and 84 months, with your chosen term highlighted.
• Balloon payments and the final lump sum on a PCP agreement are not modelled; every instalment is level.

How to use the auto loan calculator

1. Enter price, deposit and part-exchange. Type the on-the-road price, the cash deposit and the value a dealer gives for your old car.
2. Add the rate and term. Enter the representative APR from the quote, then choose a term from the list.
3. Include any fees. Put any option-to-purchase, documentation or admin fee in the fee box as one pound amount.
4. Read the payment. The results card shows the monthly payment, the amount financed and the interest over the term.
5. Compare terms and see the schedule. The Comparison tab sets all five terms side by side, and Schedule lists each instalment.

Example: A £22,000 car with a £2,000 deposit at 7.5% over 48 months

With nothing else to deduct or add, the amount financed is £20,000. Monthly instalments of £483.58 add up to £3,211.75 of interest, and with the deposit the whole cost reaches £25,211.75. In instalment 1, £125.00 is interest and £358.58 is capital. A 36-month term costs £622.12 a month with £2,396.48 of interest, and 60 months costs £400.76 a month with £4,045.54 of interest.

When something else is a better fit

• When you hold several finance offers, use the Loan Comparison Tool.
• When you want to settle a car loan early, use the Early Payoff Calculator.
• When you need the exact agreement terms, use the pre-contract credit information and agreement your finance provider gives you.

Questions about the auto loan calculator