Car Affordability Calculator (Monthly Budget)
Enter your monthly car finance budget to find out the maximum vehicle price you can afford. The calculator works backwards from your budget to find the largest loan that keeps payments within your limit.
Frequently asked questions
How much should I spend on a car per month?
Most financial advisers in the UK suggest keeping total car costs (finance, insurance, fuel, maintenance) below 15-20% of your take-home pay. The finance payment alone should ideally be under 10-15% of your monthly net income.
Does this calculator include insurance and running costs?
No. This calculator focuses on the finance payment only. Budget separately for insurance, road tax, fuel, servicing, and MOT costs. A good rule of thumb is to allow an additional 30-50% of your finance payment for running costs.
What APR should I use in the calculator?
Use the representative APR quoted by your lender. Typical UK car finance APRs range from 3% for excellent credit to 15%+ for lower credit scores. Dealer finance rates are often higher than personal loans from banks or credit unions.
Should I put down a larger deposit?
A larger deposit reduces the amount borrowed, lowering your monthly payments and total interest. It also means you are less likely to fall into negative equity. However, only use savings you can comfortably spare — do not deplete your emergency fund.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.