What car payment can I afford?

Your affordable car payment depends on take-home pay minus committed outgoings. On £2,000 take-home, 10–15% suggests roughly £200–£300 per month for finance alone. Use the calculator with your own figures for a personalised monthly payment and car price range.

How much car can I afford based on salary?

Salary affects affordability through your take-home pay. See the salary table above for £25k–£60k examples, or browse our salary guides. A £30,000 salary typically supports around £200–£400 per month on finance and an £8,000–£12,500 car budget depending on deposit, APR and term.

How does the monthly payment calculation work?

We estimate your monthly take-home from your annual salary (or use your override), subtract any outgoings you enter, then apply your chosen affordability percentage—conservative 10%, standard 15% or aggressive 20%. We then estimate a max car price using typical PCP, HP or loan terms. UK lenders use their own rules.

Does this calculator cover PCP and HP?

Yes. The calculator uses typical UK PCP, HP and personal loan structures to estimate your monthly payment and car budget. For a side-by-side PCP vs HP comparison on the same car price, use our PCP vs HP calculator.

Is this car affordability calculator free to use?

Yes. The calculator is completely free with no signup required. Enter your salary and deposit to see your max monthly payment and car budget instantly. It is an illustrative guide only—not financial advice or a credit offer.

What is the difference between PCP and HP for affordability?

PCP usually means lower monthly payments because part of the car's value is deferred as a balloon payment. HP spreads the full amount over the term, so monthly payments are typically higher but you own the car at the end with no balloon. Both affect how much car your monthly budget can support.

Is this a guarantee I can borrow this amount?

No. This is an estimate for planning only. FCA-regulated lenders apply their own affordability checks using your credit file, employment and other commitments. Always check formal terms before signing any finance agreement.

How much car can you afford? See your monthly payment & car budget

Enter your salary, deposit and budget below to see how much car you can realistically afford in the UK. Our free calculator uses typical PCP, HP and personal loan terms to estimate your maximum monthly payment and car price.

Reviewed by: Oliver Burton, EditorLast updated: 08 June 2026

Salary to car budget examples

Compare typical UK salary bands using the 10–20% take-home rule. Figures are illustrative guides—a full salary guide has more detail for each band.

Salary	Take-home	Monthly payment	Approx car price	Guide
£25,000	£1,650–£1,750/mo	£165–£330/mo	£7,000–£10,000	Salary guide
£30,000	£2,000–£2,050/mo	£200–£400/mo	£8,000–£12,500	Salary guide
£40,000	£2,550–£2,650/mo	£255–£530/mo	£12,000–£18,000	Salary guide
£50,000	£3,100–£3,200/mo	£310–£640/mo	£15,000–£22,000	Salary guide
£60,000	£3,650–£3,800/mo	£365–£760/mo	£18,000–£28,000	Salary guide

Sample monthly payment to car price

If you already know your target monthly payment, this table shows approximate car prices at typical UK finance terms (deposit, APR and term vary).

Monthly payment	Approx car price
£200	£8,000 – £10,000
£300	£12,000 – £16,000
£400	£18,000 – £22,000
£500	£22,000 – £28,000

Car affordability calculator

Your affordability result

Stretch

Recommended max monthly payment: £348
Estimated max car budget: £16,552
Estimated finance amount: £14,552
Total interest: £2,142
Total repayable: £16,693

Based on your income and 15% affordability, you could put around 348 per month towards a car. Over 48 months at the rate you entered, that supports a finance amount of about 14552. With your deposit, your total car budget is approximately 16552. This is an estimate only—actual offers depend on lender criteria.

Disclaimer

This calculator is for estimation only. It is not financial advice and does not represent a lending decision. Your actual affordability and car finance options in the UK depend on your circumstances and the criteria of individual UK lenders. Always check real quotes from lenders or speak to a regulated financial adviser before committing.

Buying a car is one of the biggest financial decisions many people make. Whether you're purchasing your first vehicle, upgrading to something newer, or switching to an electric car, understanding how much car you can realistically afford is essential.

Instead of guessing or stretching your finances too far, this tool helps you understand the true cost of owning a car and what price range is comfortable for your budget. For salary-specific examples, see our car affordability by salary UK guide, or find out how much car finance you can get.

Calculators

By salary

See example budgets and term comparisons for common UK salaries, or browse the full salary guide.

What Is a Car Affordability Calculator?

A car affordability calculator estimates the price of a vehicle you can comfortably finance based on your: monthly income, existing financial commitments, deposit available, loan or finance term, and estimated interest rate.

The calculator then estimates: maximum monthly payment, recommended car price, total loan amount, and interest payable over time. This allows you to avoid over-borrowing and stay within a safe financial range.

Many car buyers only focus on the monthly payment offered by dealerships. However, without understanding the total cost, you may end up paying thousands more than necessary.

Why Car Affordability Matters

Car finance has become extremely common in the UK. In fact, over 90% of new cars are purchased using finance agreements such as PCP or HP.

While finance can make vehicles more accessible, it also means buyers can easily commit to payments that stretch their budget.

A car affordability calculation helps you avoid common mistakes such as: choosing a car that consumes too much of your monthly income; underestimating insurance and fuel costs; ignoring interest charges; and committing to long finance terms to reduce payments.

By calculating affordability first, you can choose a vehicle that fits comfortably within your financial situation.

How Much Car Can I Afford in the UK?

A commonly recommended guideline is that your total car expenses should not exceed 15% to 20% of your monthly take-home pay.

Monthly take home	Recommended max car payment
£1,500	£150 – £300
£2,000	£200 – £400
£3,000	£300 – £600
£4,000	£400 – £800

However, affordability also depends on: housing costs, existing loans, family expenses, fuel usage, and insurance costs. Our calculator considers these factors to help estimate a realistic vehicle budget rather than an overly optimistic one.

Understanding Car Finance in the UK

Before deciding how much car you can afford, it's important to understand the main types of car finance available in the UK.

Personal Contract Purchase (PCP)

PCP is one of the most popular forms of car finance. With PCP: you pay a deposit; make monthly payments for the finance term; and have a final optional balloon payment. At the end of the agreement you can: return the car; pay the balloon payment and keep the vehicle; or trade it in for another car. PCP often results in lower monthly payments, but the final balloon payment can be substantial.

Hire Purchase (HP)

Hire Purchase is simpler than PCP. With HP: you pay a deposit; make monthly payments; and own the car outright at the end. Monthly payments are typically higher than PCP, but there is no balloon payment at the end.

Personal Loans

Some buyers choose to take a bank loan or personal loan instead of dealership finance. Advantages include: full ownership of the vehicle immediately; no mileage limits; and freedom to sell the car whenever you want. However, interest rates may vary depending on your credit score.

Costs to Consider Beyond the Car Payment

When calculating car affordability, it's important to include the true cost of car ownership, not just the finance payment.

Insurance

Car insurance in the UK can range from around £500 per year for experienced drivers to £1,500+ for younger drivers. Insurance is often the second biggest car expense after finance.

Fuel or Charging

Fuel costs depend on mileage and fuel type. Typical estimates: petrol £120 – £250 per month; diesel £100 – £220 per month; electric charging £40 – £100 per month.

Vehicle Tax (VED)

Road tax varies depending on emissions and vehicle value. Typical range: £0 for some electric vehicles; £180+ per year for petrol/diesel cars.

Maintenance and Servicing

Cars require regular servicing and occasional repairs. Average estimates: servicing £200 – £400 annually; tyres £300 – £600 every few years; plus unexpected repairs. Including these costs ensures your affordability calculation reflects real ownership costs.

How Deposits Affect Car Affordability

A larger deposit significantly improves affordability. Benefits include: lower monthly payments, lower interest costs, and access to better finance rates. Typical deposits in the UK range from 10% to 20% of the car price.

Car price	10% deposit	Impact
£15,000	£1,500	Lower monthly payment
£25,000	£2,500	Lower interest
£35,000	£3,500	More finance options

Even a modest increase in deposit can reduce monthly payments substantially.

How Interest Rates Affect Affordability

Interest rates (APR) have a major impact on the total cost of car finance. Typical UK car finance rates include: 3% – 6% APR for excellent credit; 7% – 12% APR for average credit; 15%+ APR for poor credit.

Over a 5-year loan, the difference between 5% APR and 10% APR can add thousands of pounds to the cost of the car. Using a calculator allows you to see how interest affects: monthly payment, total interest paid, and overall affordability.

What Car Price Fits Your Budget?

Many buyers begin their search by browsing cars first and considering affordability later. A smarter approach is to: calculate a safe monthly payment; estimate your deposit; choose a finance term; and determine the vehicle price that fits that payment.

Monthly budget	Approx car price
£200	£8,000 – £10,000
£300	£12,000 – £16,000
£400	£18,000 – £22,000
£500	£22,000 – £28,000

These figures vary depending on deposit, interest rate, and finance term.

Tips for Buying a Car You Can Comfortably Afford

Avoid Focusing Only on Monthly Payments

Dealerships may extend loan terms to reduce monthly payments, which increases interest costs. Always consider total repayment amount.

Compare Finance Offers

Interest rates vary widely between lenders. Compare offers from: dealership finance, banks, credit unions, and online lenders.

Consider Nearly New Vehicles

Cars lose a large portion of their value in the first few years. Buying a 2–3 year old vehicle can offer significant savings.

Factor in Running Costs

Fuel efficiency, insurance group, and servicing costs can dramatically affect affordability.

Use Our UK Car Affordability Calculator

Our tool helps you estimate: the monthly payment you can comfortably afford; maximum car price based on your budget; total loan repayment; and interest costs. By understanding your financial limits before shopping for a vehicle, you can avoid overspending and make a confident and informed purchase decision.

Use the car affordability calculator

Car affordability calculator – FAQs

How much car can I afford in the UK?
A common UK guideline is to keep car finance payments within 10–15% of your monthly take-home pay (up to around 20% if you have few other commitments). Enter your salary, deposit and outgoings in our free calculator above to see your max monthly payment and approximate car budget. Results are estimates only—not a lending decision.
What car payment can I afford?
Your affordable car payment depends on take-home pay minus committed outgoings. On £2,000 take-home, 10–15% suggests roughly £200–£300 per month for finance alone. Use the calculator with your own figures for a personalised monthly payment and car price range.
How much car can I afford based on salary?
Salary affects affordability through your take-home pay. See the salary table above for £25k–£60k examples, or browse our salary guides. A £30,000 salary typically supports around £200–£400 per month on finance and an £8,000–£12,500 car budget depending on deposit, APR and term.
How does the monthly payment calculation work?
We estimate your monthly take-home from your annual salary (or use your override), subtract any outgoings you enter, then apply your chosen affordability percentage—conservative 10%, standard 15% or aggressive 20%. We then estimate a max car price using typical PCP, HP or loan terms. UK lenders use their own rules.
Does this calculator cover PCP and HP?
Yes. The calculator uses typical UK PCP, HP and personal loan structures to estimate your monthly payment and car budget. For a side-by-side PCP vs HP comparison on the same car price, use our PCP vs HP calculator.
Is this car affordability calculator free to use?
Yes. The calculator is completely free with no signup required. Enter your salary and deposit to see your max monthly payment and car budget instantly. It is an illustrative guide only—not financial advice or a credit offer.
What is the difference between PCP and HP for affordability?
PCP usually means lower monthly payments because part of the car's value is deferred as a balloon payment. HP spreads the full amount over the term, so monthly payments are typically higher but you own the car at the end with no balloon. Both affect how much car your monthly budget can support.
Is this a guarantee I can borrow this amount?
No. This is an estimate for planning only. FCA-regulated lenders apply their own affordability checks using your credit file, employment and other commitments. Always check formal terms before signing any finance agreement.

Compare car finance offers

Use the calculators on this site to see a rough budget, then check live offers with UK finance providers. We are not a lender and we do not make lending decisions—everything here is an estimate only.

Compare car finance Check vehicle history See your affordability Check monthly payments See worked examples

Calculators run in your browser and do not store personal details.

Sources & notes

Our calculators and guides draw on publicly available UK guidance. We review content periodically but do not guarantee that external sources remain unchanged. See our about page for how we use these tools.

Sources

MoneyHelper – How to find the right way to buy a car
General guidance on budgeting and car finance options in the UK.
MoneyHelper – Work out your budget
Household budgeting principles used alongside affordability rules of thumb.
FCA – Consumer credit and your rights
Regulatory context for regulated car finance agreements.
FCA Handbook – CONC 5.2A (creditworthiness and affordability)
How FCA-regulated lenders must assess affordability (illustrative reference).
Black Horse – Car finance (sample lender information)
Example of how a major UK motor-finance provider describes its products.
Santander – Car finance (sample lender information)
Example lender product information; rates and criteria vary by provider.

Compliance notes

Car Affordability UK is not authorised or regulated by the Financial Conduct Authority (FCA). We do not provide regulated financial advice, credit broking or lending.
Calculator outputs are illustrative estimates based on the inputs you provide and published third-party guidance. They are not quotes, offers of credit or lending decisions.
FCA-regulated lenders apply their own affordability assessments, which may differ from the percentage rules of thumb used on this site. Always check formal terms before signing any agreement.
We may earn commission if you follow links to third-party finance comparison services. This does not affect how our calculators work or how content is reviewed.