APR Calculator
Work out the true APR on any car finance deal. Enter the amount borrowed, the monthly payment quoted, and the loan term — this calculator reverse-engineers the annual percentage rate so you can compare deals fairly.
Frequently asked questions
What is APR?
APR (Annual Percentage Rate) is the annualised cost of borrowing, expressed as a percentage. It includes compound interest and most fees, making it the standard way to compare finance deals in the UK. Lenders are legally required to show the representative APR.
What is the difference between APR and flat rate?
A flat rate calculates interest on the original loan amount for the entire term, ignoring that you reduce the balance with each payment. APR accounts for this and is always higher than the equivalent flat rate. A 3% flat rate is roughly equivalent to a 5.5–6% APR.
Is a lower APR always better?
Generally yes, but check the total cost of credit too. A lower APR over a longer term can cost more in total interest than a higher APR over a shorter term. Always compare the total amount repayable as well.
What is representative APR?
The representative APR is the rate that at least 51% of successful applicants will receive. Your actual APR may be higher depending on your credit score, income, and other risk factors.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.