Car Budget Calculator — Calculate Your Monthly Car Payment & Total Cost

Car Budget Calculator

Calculate your monthly car payment and total cost with our comprehensive calculator. Determine your car budget based on price, loan terms, interest rate, and additional costs.

Step 1: Car Details

£5,000
6%

Understanding Your Budget

A typical down payment is 10-20% of the car’s price. Consider your monthly budget carefully – experts recommend car payments should not exceed 15% of your monthly income.

Step 2: Loan Details

5.5%

About Interest Rates

Interest rates vary based on credit score, loan term, and lender. Shorter loan terms typically have lower rates. Good credit scores (700+) usually qualify for the best rates.

Monthly Payment Results

Summary
Loan Comparison
Cost Breakdown

Estimated Monthly Payment

£472
For 48 months at 5.5% interest
Total Loan Amount
£20,500
Total Interest Paid
£2,156
Total Cost of Car
£27,656

Loan Term Comparison

Loan Term Monthly Payment Total Interest Total Cost

Cost Breakdown

Monthly Payment Formula

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]

Where P = Loan Principal, r = Monthly Interest Rate (annual rate ÷ 12), n = Number of Payments (loan term in months). This is the standard formula for calculating loan amortization payments.

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