Compare two finance or loan offers on the same car. Enter the price, deposit, any final PCP payment, and each offer's APR and term to see which costs less overall.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How the Car finance and loan comparison works
Enter the car price and deposit, and the amount financed is the difference. If you have a PCP, also enter the final (balloon) payment. Then enter an APR and a term in months for Offer A and Offer B.
For each offer, the tool converts the APR to an equivalent monthly rate. It then works out the monthly payment on the amount financed, reduced by the present value of any balloon payment, so the final payment is not repaid through the monthly instalments. Total repaid is the monthly payments added up plus the balloon payment. Total interest is total repaid minus the amount financed.
The headline result tells you which offer is cheaper overall and by how much. Total repaid does not include the deposit, and the tool ignores fees, such as arrangement or option-to-purchase fees. It also does not model mileage limits or the car’s future value, which matter for PCP.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Price of the car | £18000 |
| Deposit | £2000 |
| Final payment (PCP balloon) | £0 |
| Offer A: APR | 6.9 % |
| Offer A: term | 48 months |
| Offer B: APR | 9.9 % |
| Offer B: term | 36 months |
Cheaper overall: Offer A by £164.07
| A: monthly payment | £380.85 |
|---|---|
| A: total interest | £2,280.80 |
| A: total repaid | £18,280.80 |
| B: monthly payment | £512.36 |
| B: total interest | £2,444.87 |
| B: total repaid | £18,444.87 |
Tips and common mistakes
Do not choose on monthly payment alone. A longer term lowers the payment but usually raises the total interest. Compare total repaid, and check any fees the lender adds.
With PCP, decide in advance whether you will pay the balloon, hand the car back or part-exchange it, and check mileage and condition terms. For loans that are not for a car, try the Loan repayment calculator. Read Loans, APR and car finance: comparing the real cost for more. General information, not financial advice.
Frequently asked questions
Which offer does the calculator say is better?
It compares total repaid for each offer, including any final payment, and tells you which is lower and by how much.
How do I enter a PCP?
Put the final payment in the Final payment (PCP balloon) box. Leave it at 0 for a normal loan or hire purchase.
Does it include fees?
No. Arrangement fees and other charges are ignored, so add them yourself if your offers include them.