Checking a dealer's APR
The calculator finds the monthly rate at which your payments exactly repay the money you actually receive, then turns it into an annual rate including the effect of compounding: APR = (1 + monthly rate)^12 − 1. Fees paid upfront reduce the money you receive, so they push the APR up.
Dealers must show the APR in finance quotes, but this lets you check a deal and see the effect of fees such as a documentation or admin fee.
Worked example
Financing £18,000 at £439.43 a month for 48 months is an APR of 8.3%. If a £500 fee were taken upfront, the same payments would mean an APR of 9.9%.
PCP deals
This calculator covers loans and HP repaid in equal payments. PCP deals have a final balloon payment, so their APR needs that payment included.
Inputs for the car finance APR calculator
Amount borrowed
The amount of the loan.
Upfront fees
Any arrangement or other fees you pay at the start, or that are taken from the loan. Enter 0 if there are none.
Monthly payment
Your regular monthly repayment from the quote or agreement.
Term
How many months the payments last.
CALCULATOR QUESTIONS
Car finance APR calculator questions
How do I check the APR on car finance?
Enter the amount financed, fees, monthly payment and term above.
Do admin fees change the APR?
Yes. Compulsory fees increase it.
Does this work for PCP?
No. PCP's final payment changes the calculation.
What's the difference between APR and the interest rate?
The interest rate is what's charged on the balance. The APR also includes compulsory fees and the effect of compounding, so it's the better figure for comparing deals.