Car affordability calculator
Start with the finance. Then add your income and outgoings to see whether the car truly fits your budget — not just what the monthly payment is.
Your finance deal
Estimates only, for guidance. Based on a standard amortising loan (personal loan or HP) with no balloon payment. PCP deals, fees, your credit profile and lender terms will change the figures. This isn't financial advice.
How much does a car really cost each month?
The real monthly cost of a car is the finance payment plus the running costs: insurance, fuel or charging, road tax, servicing, MOT and tyres. This free UK calculator works out the payment from the price, deposit, APR and term, adds your running costs, and checks the total against your take-home pay.
Worked example
A £25,000 car with a 10% deposit, financed at 9.9% APR over 48 months:
| Deposit | £2,500 |
|---|---|
| Amount financed | £22,500 |
| Finance payment | £570 a month |
| Running costs (insurance, fuel, tax, servicing) | £150 a month |
| Real monthly cost | £720 a month |
| Total interest | £4,840 |
| Total paid for the car | £29,840 |
The finance alone is about £570 a month, but with running costs the car really costs about £720 a month. These are the calculator's starting figures — change them above for your own answer.
How does the car calculator work?
- Enter the car price and your deposit as a percentage of the price.
- Set the APR from your finance quote. No quote yet? Choose "Not sure" and we use 9.9% as a placeholder until you have one.
- Pick the term in months. The payment uses the standard repayment-loan formula, as for a personal loan or hire purchase (HP) with no final balloon payment.
- Add your monthly running costs. The real monthly cost is the payment plus running costs.
- Optionally add your take-home pay and other outgoings to see what's left each month and a green, amber or red verdict.
Car calculator questions
Does this work for PCP car finance?
Not exactly. It assumes a standard repayment loan or hire purchase, where you own the car at the end. PCP has lower monthly payments and a large optional final payment, so use the figures from your PCP quote and add the running costs here.
What APR should I use?
The APR on your quote. Rates depend on your credit history, the lender, the car and the deposit. If you choose "Not sure" we use 9.9% as a placeholder — replace it as soon as you have a real quote.
What counts as running costs?
Insurance, fuel or charging, road tax, servicing, MOT, tyres, and parking or tolls you pay regularly. Spread yearly costs over 12 months. The £150 a month starting figure is only an estimate — your own numbers will be more accurate.
How much of my income should a car cost?
There is no official rule. Many people aim to keep total motoring costs, not just the finance, to around 15 to 20% of take-home pay, and the calculator flags anything above 20% as tight. What matters most is what is left over each month.
Is this financial advice?
No. It gives estimates to help you decide for yourself. For advice on a specific finance product, speak to an FCA-authorised adviser.
Sources and assumptions
Figures and rates last reviewed 9 October 2026. PocketSorted gives estimates and guidance, not regulated financial advice.