Loans & insurance · car loan
Car loan calculator 2026
A car loan’s monthly payment depends on the financed amount (price minus down payment), the interest rate, the term and any residual value. For example, a 24,000 € loan at 5% over 60 months with no residual is 452.91 €/mo, accruing 3,174.58 € of interest. This calculator shows the monthly payment, the total interest and the effective annual rate (APR).
In hire-purchase you can agree a residual value (jäännösarvo), a larger final payment. It lowers the monthly payment but is due at the end: the same 24,000 € loan over 48 months with a 10,000 € residual is 364.08 €/mo, and the final payment is 10,364.08 €. The calculator is indicative and is not a loan offer.
Loan details
Optional. A larger final payment; lowers the monthly payment but is due at the end.
Monthly payment
€453/ mo
Includes interest and fees (EU consumer-credit formula).
| Financed amount | €24,000 |
| Total interest | €3,175 |
| Total fees | €0 |
| Total cost of credit | €3,175 |
| You pay in total | €27,175 |
The calculator is indicative and is not a loan offer. It calculates the monthly payment as an annuity and the APR from the values you enter. The rate, fees and residual-value terms offered by a financier may differ. Always check the binding terms with the financier.
How is the car loan payment calculated?
A car loan is calculated as an annuity on the financed amount — the car price minus the down payment. The larger the down payment and the shorter the term, the less interest accrues. In hire-purchase you can agree a residual value (jäännösarvo), a larger final payment: it lowers the monthly payment, but the amount is due at the end of the term (or the car is refinanced, traded or returned). For example, a 24,000 € loan at 5% over 60 months with no residual is 452.91 €/mo and accrues 3,174.58 € of interest. The same loan over 48 months with a 10,000 € residual is 364.08 €/mo, and the final payment is 10,364.08 €.
What makes up the cost of a car loan?
The monthly payment is calculated as an annuity on the financed amount. A larger down payment and a shorter term reduce both the monthly payment and the interest paid. Financiers often expect around 20–30% down payment, though it is not required by law.
Hire-purchase with a residual resembles leasing: the monthly payment is lower because part of the principal is repaid only in the final payment. At the end the residual is paid in one go, refinanced, or the car is traded. Slightly more total interest usually accrues than without a residual.
The consumer-credit rate cap (H1/2026 17.50%) and cost cap (150 €/year) do not apply to vehicle hire-purchase, because it is secured — the car is the collateral. So a car loan’s rate may be at a different level than an unsecured consumer loan. Always compare the APR, which combines interest and fees into one figure.
A car loan, the car tax (autovero) and the vehicle tax (ajoneuvovero) are separate things: the loan is the cost of financing, autovero is a one-time registration tax and ajoneuvovero is an annual ownership tax. When estimating total costs it is worth accounting for all of them, plus insurance and servicing.
Frequently asked questions
What is the residual value in hire-purchase?
The residual value (jäännösarvo) is a pre-agreed larger final payment due at the end of the term. It lowers the monthly instalments because part of the principal is repaid only at the end. At the end the residual is paid in one go, refinanced, or the car is traded or returned. Slightly more total interest usually accrues than without a residual.
Does the rate cap apply to a car loan?
The consumer-credit rate cap (H1/2026: 17.50%) and cost cap (150 €/year) do not apply to vehicle hire-purchase, because it is secured (the car is the collateral). So a car loan’s rate may differ from an unsecured consumer loan. Always compare the APR between offers.
Which is better, a car loan or leasing?
With a car loan (hire-purchase) you eventually own the car; with leasing you pay for use and do not own it. Hire-purchase with a residual resembles leasing, because the monthly payment is lower and a large sum remains at the end. Compare the total cost over the whole period, not just the monthly payment — insurance, servicing and depreciation also matter.
How much down payment does a car loan need?
A down payment is not required by law, but a financier often expects around 20–30% own funds. A larger down payment reduces the loan amount, the monthly payment and the interest paid. In the calculator you can test the effect of different down payments.
What is the APR on a car loan?
The effective annual rate (APR) combines the nominal rate and all fees into one figure using the EU consumer-credit formula. It is the best number for comparing car loan offers, because the nominal rate alone does not show the effect of opening and account fees.
Can I repay a car loan early?
Yes. A consumer has the right to repay the credit early, paying only the remaining principal and interest up to the repayment date. In certain cases the financier may charge a compensation allowed by law. Early repayment reduces the total interest.