Get a feel for monthly vehicle finance repayments with our free car finance calculator
Finding the right vehicle finance deal starts with understanding the potential monthly payments you can afford. Here at Octane Finance, we offer an easy-to-use online car finance calculator to estimate your repayments.
We proudly provide tailored finance solutions for cars, vans, and motorbikes through our extensive panel of lenders in the UK. Our free finance tool allows you to input details to automatically calculate a personalised monthly payment estimate for your vehicle. This helps give you a clear snapshot of costs to check if the price matches your budget.
Once you’re ready to proceed, our expert advisors reach out to our lending partners to find real approved finance rates to best fit your needs. Get started by clicking on our finance calculator, below.
How do I calculate car finance?
First of all, you need to determine the car's price after any down payment (initial deposit) has been made - this is the amount you will finance. If you know the loan's interest rate and repayment period offered by the lender, then you can calculate the monthly payment using this formula:
- Monthly payment = amount borrowed x flat rate of interest x number of loan years ÷ number of loan months
Using our free online car finance calculator below can help automatically work out the figures after you input the variables.
How is car finance interest calculated?
An annual percentage rate (APR) is agreed upon when taking out car finance - this includes the headline interest plus any additional fees - common rates are around 12% APR.
It’s worth remembering that rather than paying just for the original amount borrowed, the monthly interest rate is then charged on the outstanding balance owed each month, which will be the total amount payable.
What is a good APR rate for car finance?
A good APR rate for car finance in the UK is generally considered to be between 9% and 12%. Compared to historical benchmarks, there has been nearly a 2% increase in average interest rates offered across the market in recent years, largely due to broader economic conditions like high inflation and rising base rates prompted by the cost of living crisis.
Lenders have also tightened approval criteria, making financing above 10% APR more common for average borrowers compared to previous years. However, well-qualified applicants can still get very competitive deals from prime lenders, so please speak with us to find out more about the APR you could be offered on car finance.
Free finance calculations at your fingertips
We encourage you to use the handy Hire Purchase (HP) or the Personal Contract Purchase (PCP) vehicle finance calculator below to get a feel for your monthly payments. It’s completely free of charge and regardless of what type of finance product you use, you have peace of mind knowing that here at Octane Finance, we have a huge panel of lenders lined up ready to find you the best car finance rates.