Working back from the payment
A lender sets the payment from the amount you borrow, the rate and the term. This calculator reverses that: it finds the largest loan whose payments fit the figure you can afford.
The result is the amount you can finance, before any deposit. Add your deposit to get the car price you can shop for.
Worked example
A budget of £350 a month at 7% over 5 years supports a loan of £17,675.70. Over the term you would repay £21,000, of which £3,324.30 is interest.
With a £2,000 deposit, the car price you could afford would be about £19,675.70. At a lower rate, the same payment supports a larger loan.
Keep the budget realistic
A payment that fits your budget on paper can still be too high once insurance, fuel, tax and maintenance are added. Lenders also check affordability, not just the arithmetic.
Leave room for rate changes if the loan is not fixed, and for a deposit that reduces what you need to borrow.
Inputs for the car loan amount calculator
Monthly payment
The monthly payment you can afford, or the one on your loan.
Interest rate (per year)
The yearly rate, charged monthly at one twelfth of the rate.
Term
How long you want the loan to run, in years.
Deposit
Cash or trade-in value you will pay upfront, added to the loan amount to give the car price.
CALCULATOR QUESTIONS
Car loan amount calculator questions
How much can I borrow for £350 a month?
At 7% over 5 years, about £17,675.70. A lower rate or a longer term would support more.
Does the deposit increase the car price I can afford?
Yes. The loan amount plus the deposit is the price you can shop for.
Is the result guaranteed?
No. It is the arithmetic limit; lenders also assess income, credit history and existing debts.
What if I can only afford a small payment?
A longer term lowers the payment but raises the interest. Compare the total cost before stretching the term.