Car loan calculator
Price, deposit, APR, and, if the deal has one, the balloon. The monthly is what the showroom quotes, the total cost tile is what the car costs.
Guide
How to use it
- Enter the car price and your deposit (part-exchange value counts as deposit).
- Enter the APR from the finance quote, not the flat rate, if only a flat rate is offered, ask for the APR, they must provide it.
- For PCP-style deals, enter the balloon (the "optional final payment" or GMFV). For hire purchase, leave it at 0.
- Compare the total cost tile between quotes, monthlies are designed to look similar, totals are not.
Examples
HP, PCP and the balloon
Hire purchase clears the whole car over the term, higher monthlies, and the car is simply yours at the end. The default numbers minus the balloon show it.
The balloon defers £6,000 to the end, cutting the monthly sharply, but you still owe it: pay it, refinance it, or hand the car back and walk away with nothing.
Interest accrues on the whole balance including the deferred balloon, so PCP’s cheaper monthly hides more total interest than HP on the same car. The tiles make the comparison honest.
Method
How it works
With a balloon, the payment is computed so the balance falls exactly to the balloon by the final month (interest is charged on the full outstanding balance throughout, which is why PCP interest totals surprise people). Without one, it is standard amortisation.
Total cost adds deposit, all monthlies and the balloon, the number to compare across quotes, alongside the APR itself.
FAQ
Frequently asked questions
What is a balloon or GMFV?
A deferred chunk of the price, set at the car’s guaranteed minimum future value. You only own the car if it is paid, that is the "optional final payment" line in PCP quotes.
Is PCP more expensive than HP?
For the same car and rate, yes in total interest, you carry a bigger balance for longer. PCP buys lower monthlies and the option to walk away, that option has a price.
Should my deposit be big or small on PCP?
Counterintuitively, modest: money in a PCP deposit is gone if you hand the car back. Some buyers keep deposits small and savings liquid for exactly that reason.
What happens at the end of a PCP?
Three doors: pay the balloon and keep it, hand it back (mileage and condition charges may apply), or use any equity above the GMFV as deposit on the next deal, the dealer’s preferred door.
Can I settle car finance early?
Yes, consumer credit early-settlement rights apply: request a settlement figure and the interest rebate is recalculated. Useful when selling a financed car.
Dealer finance or a bank loan?
Run both here: a personal loan buys the car outright (you own it from day one) and often undercuts showroom APRs, though manufacturer deposit contributions can tilt PCP back. The totals decide.
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