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Car Loan Calculator
Loan vs Cash Comparison

Estimate your monthly car finance payment, total interest, and amortization schedule. Compare financing vs paying cash, and see how a larger deposit or extra payments reduce your total cost.

Currency
🚘
Calculate Car Finance
Vehicle & Loan Details
€
Total on-the-road price of the vehicle
€
Amount you pay upfront. Higher deposit means a lower monthly payment and less interest.
%
Typical car loan rates vary by lender, credit profile, and whether the vehicle is new or used.
⏱
Optional: Extra Monthly Payment
€
Any amount above the scheduled payment reduces principal faster and lowers total interest.
Finance vs Cash Comparison
%
Used to estimate the opportunity cost of paying cash instead of keeping the money invested.
Estimated Monthly Payment
—
over full term
Total Interest
—
cost of borrowing
Total Repaid
—
loan amount + interest
Loan Amount
—
price minus deposit
Interest Saved (Extra Payments)
—
vs standard payments
Finance vs Paying Cash
🎥 Finance (Loan)
Monthly payment—
Total interest paid—
Deposit paid upfront—
Total out-of-pocket cost—
💰 Pay Cash Outright
Upfront payment—
Loan interest avoided—
Lost investment return—
Estimated true cash cost—
Balance Remaining Over Loan Term
Standard payments
With extra payments
Amortization Schedule
MonthPaymentPrincipalInterestBalance
✦ Cal, AI Explanation
Cal is analysing your car finance result...
💬 Ask Cal a follow-up question
Cal
Your car finance result is ready. Ask me about whether to finance or pay cash, how a bigger deposit helps, or what happens if you make extra payments.

🚘 Car Finance Tips

A larger deposit reduces the loan amount, which lowers both your monthly payment and your total interest cost.
Shorter terms cost more per month but usually much less overall. A longer term lowers the payment but increases the total borrowing cost.
New car finance rates are often lower than used car rates because lenders typically see new vehicles as lower risk.
Paying cash avoids interest entirely but ties up capital. The cash comparison helps estimate that opportunity cost.
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Related Guides
How Car Finance Works→ Loan vs Cash, Which Wins?→ How to Pay Off Debt Faster→

How Car Finance Works

A car loan is a standard amortizing loan. You borrow the purchase price minus your deposit, then repay it in equal monthly instalments over the term. Each payment covers both interest on the outstanding balance and principal reduction.

The most important comparison is usually not just the monthly payment. It is the total interest paid over the full term. A lower monthly payment often means a longer term and materially more interest overall.

The Formula

Loan Amount = Car Price − Deposit
Monthly Rate = Annual Rate ÷ 12
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
P = loan amount. r = monthly interest rate. n = number of monthly payments.

Finance vs Paying Cash

Paying cash avoids loan interest but can create an opportunity cost if that capital could have remained invested. This calculator models both sides so you can compare the financing cost against the estimated return you give up by paying cash outright.

Car Loan Scenarios, Same Car, Different Terms

Car price €20.000, deposit €4.000, loan amount €16.000. Rates are illustrative.

TermRateMonthly PaymentTotal InterestTotal Repaid
24 months5,9%€712€1.075€17.075
36 months6,5%€489€1.597€17.597
48 months7,0%€383€2.371€18.371
60 months7,5%€321€3.255€19.255
72 months8,0%€281€4.193€20.193

Frequently Asked Questions

Is it better to finance a car or pay cash?+
It depends on the loan rate compared with the return you expect to earn if you keep your cash invested. Financing can be financially preferable if the expected return on your capital exceeds the borrowing cost, but investment returns are uncertain while loan interest is guaranteed. Paying cash is simpler and removes repayment risk.
How much deposit should I put down on a car loan?+
A larger deposit reduces the loan amount, which lowers both your monthly payment and your total interest. It can also reduce the risk of negative equity, where you owe more than the car is worth if you need to sell early. Use the result as a loan estimate, not as a guaranteed quote. Real loan cost can change with lender fees, compounding method, repayment frequency, early repayment rules, credit score, taxes, insurance, and variable interest rates. Compare the calculator output with the official loan agreement before making a decision.
Do extra monthly payments always reduce interest?+
Generally yes, provided your lender applies extra payments directly to principal and there is no prepayment penalty. Lowering principal earlier means future interest is calculated on a smaller balance. Use the result as a loan estimate, not as a guaranteed quote. Real loan cost can change with lender fees, compounding method, repayment frequency, early repayment rules, credit score, taxes, insurance, and variable interest rates. Compare the calculator output with the official loan agreement before making a decision.
What is a realistic car loan rate in Europe in 2026?+
Rates vary by country, lender, credit profile, and whether the vehicle is new or used. In many European markets, new car loans often fall around 4% to 8%, while used car loans may be higher. Always compare the APR and the total amount payable, not just the monthly figure.
What happens if I sell the car before the loan is paid off?+
You normally need to settle the remaining loan balance at the point of sale. If the car is worth less than the outstanding balance, you must cover the difference yourself. This risk is more common with small deposits and longer loan terms. Use the result as a loan estimate, not as a guaranteed quote. Real loan cost can change with lender fees, compounding method, repayment frequency, early repayment rules, credit score, taxes, insurance, and variable interest rates. Compare the calculator output with the official loan agreement before making a decision.