How Much Car Can I Afford?
Enter the monthly amount you would like to spend on car finance and we'll estimate the vehicle price that could fit within your budget.
Estimated Finance Budget
Calculate what kind of car you can afford with your monthly budget?
Simply enter your monthly budget in this car finance affordability calculator works. It backwards from the monthly payment you want to make. Enter your monthly budget, finance term and APR to estimate the amount you could potentially finance.
How the monthly budget calculator works
The calculator starts with your chosen monthly finance payment and calculates the present value of those payments using the selected APR and finance term. For PCP calculations, an optional final payment can also be included.
Hire Purchase (HP)
With Hire Purchase, the financed amount is generally repaid through the scheduled monthly payments, together with any applicable charges. A longer term can reduce the monthly payment but may increase the total cost of borrowing.
Personal Contract Purchase (PCP)
PCP (personal contract purchase) can produce a higher estimated vehicle price for the same monthly budget because part of the vehicle's value is deferred to an optional final payment. The actual final payment and vehicle value depend on the finance agreement and lender.
Your monthly payment isn't your whole car budget
When deciding how much to spend on a car, remember that the finance payment is only one part of the overall runninng or operating cost (which is different from total ownership cost). Insurance, fuel, vehicle tax, servicing, maintenance and other running costs should also be considered.
Estimate Before You Shop
Use your monthly finance budget to get an indication of the vehicle price that may fit your preferred payment. For an estimate based on a specific vehicle price, try our car finance calculator.
Car Finance Affordability Calculator FAQs
Common questions about calculating a car budget from a monthly finance payment.
1. How expensive car can I afford on £300 a month?
A £300 monthly finance budget can support different vehicle prices depending on the APR and term. A longer finance term generally allows a higher amount to be financed at the same monthly payment, although it can increase the total cost of borrowing.
3. Is this an affordability check?
No. This calculator estimates the amount of vehicle finance that could correspond to a chosen monthly payment. It does not assess your income, expenditure, credit history or ability to obtain finance.
4. Does a longer finance term reduce monthly payments?
Generally, spreading borrowing over a longer period reduces the scheduled monthly payment. However, because interest can be charged for longer, the total amount repaid may be higher.
5. Why can PCP finance a more expensive car for the same monthly payment?
PCP defers part of the vehicle's cost to an optional final payment. This can reduce the scheduled monthly payments compared with financing the same amount entirely through HP, although the overall costs and terms can differ.
6. Does APR affect how much car I can afford?
Yes. A higher APR increases the cost of borrowing, meaning the same monthly budget generally supports a lower financed amount than a lower APR over the same term.