Car Loan Calculator

Use this calculator to work out how much your monthly car loan repayments will be. The car loan calculator will also provide an illustration of how much you could expect to repay each month based on different repayment periods. If you are thinking of taking out a car loan it is important that you:

The car loan calculator will provide your a monthly interest repayment over 1 year, 2 years, 3 years, 4 years, 5 years, 10 years and compare them to a monthly repayment period of your choosing (so you can create your own car loan illustration).

Car Finance Repayment Calculator
Car Finance Repayment Results
What?Car Loan Repayment Term
1 Year
12 months
2 Years
24 months
3 Years
36 months
4 Years
48 months
5 Year
60 months

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Car Finance and Budgeting for a New or Used Car

This image shows details about car loan calculations including car finance and loan formulas used to calculate car loan finance on the car loan Calculator and auto loan rate calculator

Are you planning to buy a car? Are you thinking of investing in your dream car? Securing a personal loan and/or personal can finance via a car loan is easily done these days and the new car dream made a reality but you need to be careful of the hidden fees, and interest charges. Car buyers who choose a loan as an option to finance their car purchases can often get overcharged on the payments if they lack the understanding of calculations that define the final monthly payments. This amount often reaches £1000 or more per year according to the financial regulator of Britain, this happens because of the way the lenders pay commissions to motor dealers.

The FCA also state that more than 95% of the various companies that arrange car finance use commission structures providing strong incentives. This results in arranging deals for consumers, wherein they have to pay high-interest rates. As a consumer, it is worth using the car loan calculator to work out how much you have to pay per month as your car loan amount. If this differs from the figures quoted by your car finance provider, query why. They must, by law, explain all elements of the car finance package you are being sold.

The Car Loan Calculator

The online car loan calculator by iCalculator is available for borrowers to help them determine the monthly payment on a car and/or the purchase price of the car. You can use such online auto loan rate calculators not only for buying but also for renting cars. The tools help compare the rates as well as choose the most feasible one. The car loan calculators are crucial to make the right decision as the prior calculation of loan payments becomes easier with them.

Factors that can affect your car loan

While calculating the car loan, the first thing you may like to know is the amount of monthly payments. Most important factors to consider in this regard are, the total loan principal and the loan period.

The loan principal: While you are calculating your car loan amount, you should keep in mind, the amount of money you have originally borrowed. This is known as the principal amount and you have to calculate the interest based on this amount. With each monthly payment, the principal gets deducted. For the first few months, a good amount of the monthly payments cover the interest costs. As the loan matures, payments towards interests increase whereas the interest amount decreases.

Interest rate and the loan period: The online calculators also help in determining the loan tenure, once the values of the monthly instalments are entered along with the interest rates. The rate of interest varies with the lender and also depends upon the credit scores of the borrower.

Why should you use a car loan calculator?

Buying a brand new vehicle is indeed an enjoyable experience. But, the financial calculations associated with it, especially when you decide to take a loan, maybe quite frightening. This can also be time-consuming and stressful. When you use a car loan calculator, you can calculate exactly how much you can afford before visiting car show rooms. Not only does this help you budget appropriately, it also removes any sales pressure at the showroom. Lets consider the car buying process and benefits of a car loan calculator in more detail.

Sensible approach to buying a new or used car

The first step in the vehicle buying journey starts with determining your affordability. A calculator for car loans can provide you with an easy and quick estimation of your month-to-month payment before the process of car searching starts.

Before you start hunting for the appropriate car for yourself, it is highly important to set a budget and determine the amount of monthly earnings that will go into your automobile. While estimating the budget, fuel, car insurance and servicing are the factors that you have to consider. Once you are sure of the amount you can spend, a car loan calculator will help you in determining the price range of the car you should opt for.

The benefits

  • Time-saving: Without the help of an auto loan calculator, a precise calculation becomes very difficult. Calculation on these calculators will make the process uncomplicated and save a lot of time.
  • Easy to use: Using our online car loan calculator is quite easy. You just need to add values such as loan term, interest rate, and car loan amount to get details of monthly repayments.
  • Saving money: When you have made a clear cut decision on which car to buy, you will be able to choose the car loan options matching your needs and affordability. You will be able to ensure that your monthly earnings can cope up with the payments for the car. This will help you spend less.
  • Choose options: In case, the car dealer or the bank offers an unreasonable option for auto loans, you will be able to discard it as well as choose the correct option.
  • Obtain a great deal: All the above steps will ensure that your final deal is just great.


Buying a new car is a dream come true for most people. As with most dreams, it is easy to let our desire for them make us blind to the practicalities in life. When buying a car, it is easy to go for the best, fastest or newest model but doing so may turn a dream into a nightmare if you cant afford to pay for the car or run and maintain the car. Car loans typically last for several years so it is important to ensure that your dream remains happy by budgeting accordingly. The car loan calculator can help you achieve that dream within a budget you can afford on a monthly basis.

Considerations before taking out a Car Loan

  • Affordability: Be sure you can really afford to make the car loan repayments. Only you really know if you can afford a new car or not and taking out loans which you will struggle to repay will only cause you financial hardship and pain in the future.
  • Shop around: It always pays to shop around and see what deals are available. Most banks and building societies run promotions at various points of the year. Never assume that one lender is better than the other, look for the good deals as they could save you a lot of money. Banks are normaly cheaper than car dealerships!
  • Check the Interest Rate: The most common mistake that lenders make is not fully reading and understanding the interest rates applied to their car loan. Make sure that the catchy low interest rate is the one you are getting. Most lenders advertise at low interest rates to get you in the door but you are likely to find that achieving the low rates means borrowing more than you budgeted for or taking out the loan over a longer term, this will mean you repay much more money! Don't be tempted!
  • Borrow Little, Repay Quickly: The best car loan is one repaid quickly. A quick repayment means less interest paid and less stress about your debt.
  • Pay Day Loans: Pay day loans are brilliant if you want to destroy your financial credibility, get yourself into spiraling debt and have years of stress and anxiety over your finances. DO NOT use Pay Day lenders and certainly not for a car, there are much better options. They do not care about you or your finances and will destroy your life simply to make money. At iCalculator, we seriously hope that the government takes measures to outlaw these morally and ethically corrupt businesses.
  • Don't Lend at All! It's difficult to avoid taking loans in modern society. Modern life is about consumerism and spending. Our grandparents survived and had healthy life's by getting by and enjoying the rare treats. There is a lot to be said for living a simpler life without financial stress. If you can, save. Make that reward or treat worthwhile my making your money work for YOU and not for someone else.
  • Personal Loan or Car Loan? Personal loans normally offer better interest rates than car loans but your really should shop around. Second hand dealerships normally offer ridiculous APR rates and will push you to take the loan, often showing a lower APR that you will receive. Used car loans typically provide large commissions for used car dealerships and will rarely offer a better interest rate that a personal loan. If you are looking to buy a new car, shop around and be patient. Almost every dealership offers a 0% finance deal at some point in the year. You can get your dream car and a dream interest rate if you are patient and buy wisely.
  • PCP - Personal Contract Purchase PCP's have become increasing popular over the past few years as they allow those with no deposit to access the same/similar monthly car rental prices as those who put a deposit down. PCP's can be a good option but beware, depending on your preferences the potential risks of a PCP loan are:
  1. You DO NOT own the car: the car is legally owned by the finance company, NOT YOU. You do not own the car until the final payment has been made.
  2. Milage Restrictions PCP contracts are normally include distance related caveats. You will be limited to the annual mileage you choose upfront at the point of contract. If you exceed the PCP milage specified you will be charged excess mileage fees if you decide not to purchase the car at the end of the PCP contract.
  3. Cancelling a PCP Contract If your circumstances change and youwish to cancel your contract and return the car, there is likely to be a contract break penalty fee. The amounts charged for exiting a PCP contract vary, check your agreement for more details.
  4. Modifications, Pimp those Wheels! or not! Did we mention, IT'S NOT YOUR CAR. You cannot modify the car in any way without permission from the finance company. If you do modify the car without permission you will face a penalty at the end of the contract unless you choose to buy.