The true cost
Car Finance Deposit Calculator
See exactly how your deposit changes the monthly payment and the total cost of car finance.
Monthly & total, side by side
Monthly
£289.19
Total payable
£24,881
Interest £4,881 · balloon £8,000
Monthly
£426.91
Total payable
£23,492
Interest £3,492
Monthly
£426.91
Total payable
£23,492
Interest £3,492
The lowest monthly is rarely the cheapest deal. Compare the total amount payable — that's the true cost.
How we work this out
We finance the price minus your deposit. Monthly = amount financed × monthly rate ÷ (1 − (1 + monthly rate)^−term). Total payable = deposit + payments (+ balloon on PCP). A larger deposit cuts the amount financed, so it cuts both the monthly and the total interest.
Figures are estimates based on what you enter. Your real quote depends on the lender and your credit.
Full method: how we calculate.
A bigger deposit lowers both your monthly payment and the total amount payable, because you borrow less and pay interest on a smaller balance. This calculator shows the monthly and the total for any deposit, so you can find the right amount for PCP, HP or a loan.
Put down more today and you hand over less overall. Change the price, deposit, term and APR above and watch the monthly and the total move together.
What is a car finance deposit?
A car finance deposit is the lump sum you pay up front to reduce the amount you borrow. It is usually 10% of the price, but you can put down more or, on some deals, nothing at all.
Your deposit can be cash, the equity from a part-exchange, or a manufacturer contribution. Whatever the source, every pound of deposit is a pound you do not finance — and do not pay interest on.
Most lenders ask for around 10%, so a £2,000 deposit on a £20,000 car. A 0% deposit deal is possible but means a higher monthly and more interest overall.
How does the deposit change your monthly payment?
The deposit cuts your monthly payment because you borrow less. On a £20,000 car over 48 months at 9.9% APR, raising your deposit from £0 to £2,000 drops the monthly from about £502 to about £452.
Worked example
How a bigger deposit cuts the total cost
A bigger deposit cuts the total amount payable as well as the monthly, because you pay interest on a smaller balance. The monthly is what you feel; the total is what it truly costs.
The same logic applies on PCP and a personal loan — borrow less, pay less interest. Compare the deals fairly on the APR calculator, which turns any monthly quote back into a true-cost figure.
| Deposit | Monthly | Total payable | Interest |
|---|---|---|---|
| £0 | ≈ £502 | ≈ £24,108 | ≈ £4,108 |
| £1,000 | ≈ £477 | ≈ £23,902 | ≈ £3,902 |
| £2,000 | ≈ £452 | ≈ £23,697 | ≈ £3,697 |
| £4,000 | ≈ £402 | ≈ £23,286 | ≈ £3,286 |
How much deposit should you put down?
Put down as much as you comfortably can without draining your savings. A bigger deposit cuts the cost, but it should not leave you short for emergencies or unable to insure and run the car.
- Aim for at least 10% if you can — it is what most lenders expect and it keeps the monthly sensible.
- Keep an emergency buffer back; do not put your last pound into a deposit.
- On PCP, a bigger deposit lowers the monthly but the balloon stays the same, so check the total to own — see the balloon payment calculator.
No deposit, or a deposit you cannot afford?
You can usually get car finance with no deposit, but you will pay more each month and more in total. A guarantor or a stronger credit file can help if a no-deposit rate looks steep.
If a deposit is the only thing standing between you and an affordable monthly, work backwards from a budget first with our eligibility estimate — it runs no credit check. You can also see what a monthly budget really buys on the affordability calculator.
Was your finance deal mis-sold?
Some car finance from 2007–2024 carried hidden commission that raised your interest rate — which means you paid more, whatever your deposit. If yours did, you may be owed redress.
The FCA is running a redress scheme after the Supreme Court ruling of 1 August 2025. Estimate your position with the compensation estimator — it is an estimate, not a promise, and you can claim free yourself with no claims firm taking a cut.
Frequently asked
How does a deposit affect car finance?
How much deposit do I need for car finance?
Can I get car finance with no deposit?
Does a bigger deposit lower the total cost?
Can I use a part-exchange as my deposit?
Work out your next step
Independent calculators — pick the one that fits your situation.