Car Loan Calculator

Looking to buy a new car with a personal loan? Use our car loan calculator to find out what your monthly repayments may look like and how APR affects what you need to pay back.

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Calculate your monthly car loan repayments

Representative example


Representative 26% APR fixed, based on a loan amount of £5,000, over 5 years. This would give you a monthly repayment of £141.92 and a total amount repayable of £8,5152.01.



Top FAQs:

How to use our car loans calculator

It’s simple to use our car loan calculator:

  • Enter the amount you want to borrow: From £500 to £25,000
  • Tell us how long you want to pay it back: From one up to seven years
  • Enter your chosen interest rate: This gives an idea of the potential interest rates from lenders
  • See your results


When you change the interest rate or the term of the loan, you can see how this affects the monthly repayments. Remember, the car loan calculator is just an example rather than the exact cost. It’s designed to help you understand what you can afford.

Benefits of our car loan calculator

By using our car loan calculator, you’ll be able to:


  • See what your monthly repayments may be: Once you enter your details, you’ll get a monthly repayment figure based on the total repayable amount of a loan. This helps you understand what you can potentially afford each month.
  • Understand how the annual interest rate affects your monthly repayments.
  • See how the length of the loan affects your monthly repayments: When you change the loan term on our calculator, the monthly repayment amount will go up or down. This gives you an idea of how much you’d need to pay each month.
  • Discover if a car loan is right for you: With some figures at hand, you can decide if you can afford to take out a car loan and if it’s the right choice for you.


Our car loan calculator can help you understand whether you can afford a car loan and what you might be able to borrow. This can help you set a budget for the car you want to buy.

How does our car loan calculator work?

Our car loan calculator uses different factors to work out the results, including:

  • Total amount being borrowed
  • Interest rate (APR)
  • Loan term
  • Monthly payments


When you change these figures, it changes your results. If you want to understand how a longer or shorter loan term affects your monthly repayments, just change it in the calculator. It will also show you how much you could pay in interest over the term of the loan, which helps you understand the total cost. It can help you decide whether a loan, car finance, or savings could be the best option to buy your new car.


Remember, the calculator simply gives you a rough guide as to what you could borrow. It’s based on the information you enter and doesn’t take into account your borrowing history or credit score.

How is interest calculated on a car loan?

When you take out a car loan, you’ll have to pay back the total amount you borrow (the principal) plus the interest. In our car loan calculator, you’ll see an APR (annual percentage rate) which covers the interest you pay and any other charges.


So, when you make monthly payments, some of this goes towards paying off the principal and some of it is interest.


The interest charged each month on a car loan is based on the current balance of the loan at that time. When you first start paying off the loan when the balance is higher, you pay more each month towards your interest. As you pay off the balance over time, the interest portion of the monthly payment goes down. Your monthly payment being made remains fixed.


Our car loan calculator will help you understand how the interest rate determines how you’d need to pay each month and the total amount that would be repaid over the full term of the loan.

Factors that can influence APR and eligibility

The following can affect both APR and your eligibility:


  • Credit score: A higher credit score means you’re viewed as a lower risk by lenders. This means you’ll be potentially more eligible for a loan and will likely be offered a lower APR, but bear in mind that the credit score doesn’t always take in to account whether you can afford a repayment, the lender will have their own way of working this out based on your individual circumstances.
  • Loan term: Shorter loans generally have lower interest rates whilst longer terms often mean higher rates.
  • Amount borrowed: Large loans generally come with lower interest rates, but it does depend on the lender and of course your individual circumstances.


Looking to borrow a specific amount? We can help you check your eligibility for a loan for amounts including:



How can I keep my monthly car payments down?
  • Improve your credit score before applying for a loan: Lenders will be more likely to offer you lower interest rates if you have a good credit score. You can improve your score by regularly keeping up with existing payments, registering for the electoral roll, closing any unused accounts and checking for any errors on your credit report. Don’t make too many loan applications at the same time as this can be concerning for lenders.


  • Opt for a longer term loan: This will reduce your monthly repayments, but you will pay more in interest over the length of the loan.


  • Compare various loan deals: Before applying for a loan, you’ll want to compare as many loans as possible. Different lenders may be willing to offer you different interest rates which can mean different monthly repayments. You can check your eligibility and compare car loans through Asda Money using only a soft search which does not negatively affect your credit score.

Looking to fund something else?

You can use a personal loan for a range of other things, including:

Debt Consolidation: Combining multiple debts into one place for easier management

Rep rate 26%

Please remember that by consolidating existing borrowing, you may be extending the term of the debt and increasing the total amount you repay

Debt consolidation loans overview

Home Improvement: Helping you improve your home in small or big ways

Home improvement loans overview

Holiday: Finance for a short break or a trip of a lifetime

Holiday loans overview

Wedding: Helping you fund some or all of your big day

Wedding loans overview


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