Finance calculator

Car Affordability Calculator

Estimate the car price that fits an entered deposit and monthly payment budget under standard repayment finance.

Use this calculator

Enter a monthly budget, deposit, APR and term to estimate a payment-based car-price ceiling.

What your result means

This payment-budget estimate works backwards from the monthly payment, deposit, APR and term you enter to estimate the financeable principal and a corresponding car-price ceiling.

It does not assess income, credit history, lender affordability criteria or finance eligibility. The result is an illustration, not a lending offer or responsible-borrowing assessment.

Worked example

Illustrative inputs only: £400 monthly budget, £2,000 deposit, 6% APR and 48 months.

Estimated amount financed
£17,032.13
Deposit
£2,000.00
Estimated maximum car price
£19,032.13
Estimated interest
£2,167.87

The calculator uses the same reverse-amortisation helper for the payment budget you enter.

Formula

Payment×1(1+APR1200)MonthsAPR1200\text{Payment}\times\frac{1-\left(1+\frac{\text{APR}}{1200}\right)^{-\text{Months}}}{\frac{\text{APR}}{1200}}
Financeable principal+Deposit\text{Financeable principal}+\text{Deposit}
Monthly payment×Months\text{Monthly payment}\times\text{Months}

Monthly-budget sensitivity at an illustrative £2,000 deposit, 6% APR and 48 months

Monthly budgetEstimated amount financedEstimated maximum car price
£300.00£12,774.10£14,774.10
£350.00£14,903.11£16,903.11
£400.00£17,032.13£19,032.13
£450.00£19,161.14£21,161.14
£500.00£21,290.16£23,290.16

How this differs from a deposit calculation

This page starts with a deposit and monthly-payment budget, then estimates a car-price ceiling. The Car Finance Deposit Calculator starts with a known car price and monthly payment, then estimates the deposit needed.

At 0% APR, monthly payment multiplied by the term gives the financeable principal. At a positive APR, interest means the same payment supports less principal.

What lenders may assess separately

A lender can use income, expenditure, credit history, product fees, vehicle details, term limits and other information that this simple payment model does not use.

Actual APRs and fees can differ from the values entered. Use real quotes and your own full budget before deciding what vehicle price to consider.

Practical guidance

Treat the result as an upper planning limit rather than a target. Leave room for insurance, fuel or charging, maintenance, tax and unexpected costs alongside the monthly finance payment.

Try a lower monthly budget and a shorter term as well as your preferred scenario. A longer term can raise the calculated price ceiling while increasing the total interest paid.

Assumptions and limitations

  • APR and monthly payment remain fixed throughout a whole-number term.
  • The estimate includes only the entered deposit and monthly repayments; fees, vehicle extras, trade-in value and lender contributions are excluded.
  • It is not an affordability assessment, credit decision, guaranteed finance result or financial advice.

Helpful questions

Is this an income-based affordability calculator?

No. It is a payment-budget estimate only and does not assess income, expenses, credit history or lender affordability criteria.

Why does APR reduce the estimated car price?

At a positive APR, part of every payment pays interest, leaving less available to repay the financeable principal.

Does a larger deposit increase the car-price ceiling?

Yes. The entered deposit is added to the principal supported by the monthly payment.

Can I work out the deposit needed for a specific car?

Yes. Use the Car Finance Deposit Calculator to work from a known price and target payment.

Is the result a finance offer?

No. Actual lender APRs, fees, affordability checks and approval decisions can differ.

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