Budgeting for the full monthly cost
Car finance is only part of what a car costs each month. Insurance is a legal requirement for driving on UK roads, and finance agreements often require comprehensive cover.
Add your monthly insurance premium to see the combined monthly cost and the total over the agreement.
Worked example
Borrowing £18,000 at 8% over 48 months costs £439.43 a month. With £60 a month for insurance, the total is £499.43 a month, and £23,972.76 over the 48 months.
Interest is worked out monthly at one twelfth of the annual rate. Lenders may calculate interest differently (some charge it daily), so your actual payments can differ slightly.
Other running costs
Fuel or charging, road tax, servicing and an MOT once the car is old enough are also worth budgeting for.
Inputs for the car loan and insurance calculator
Car price
The price of the car.
Deposit
What you're paying upfront.
Interest rate (per year)
The annual interest rate on your finance. The rate shown is only an example, so enter the rate from your quote.
Term
How many months you'll repay over.
Monthly car insurance
Your monthly insurance premium. If you pay annually, divide by 12.
CALCULATOR QUESTIONS
Car loan and insurance calculator questions
Do I need comprehensive insurance on a financed car?
Finance agreements often require it. Check the terms of your agreement.
I pay insurance yearly. What do I enter?
Divide the annual premium by 12.
Is insurance part of the finance agreement?
Usually not. It's a separate policy, but this calculator adds them together for budgeting.
What else should I budget for?
Fuel, road tax, servicing and MOT costs.