Car Loan Calculator (Portugal)
How much will a car loan cost you each month? This calculator estimates the payment from the car price, the down payment, the nominal annual rate (TAN) and the term, and lets you add a residual value (the final balloon that lowers the payment but is owed at the end). It also shows the TAEG (the APR), which measures the real cost of the credit, the total you pay and the total cost.
You finance the price minus the down payment. If you set a residual value the payment is lower, but you owe that amount at the end. The TAEG (APR) bundles the interest and the upfront fee and measures the real cost of the credit. Leave the down payment, residual and fees at zero if they do not apply.
Car loan summary
| Vehicle price | €25,000.00 |
| Down payment | €5,000.00 |
| Amount financed | €20,000.00 |
| TAN (nominal annual rate) | 8.5% |
| TAEG (effective cost) | 8.84% |
| Number of payments | 60 |
| Final balloon (residual value) | €4,000.00 |
| Total paid (60 payments + final balloon) | €25,395.87 |
| Of which interest | €5,395.87 |
| Total cost of credit | €5,395.87 |
Educational estimate, not financial advice. It computes the capital-and-interest payment (French system) on the amount financed (price − down payment) at the TAN you choose, amortising down to the residual value, and the TAEG with the upfront fee you enter. It excludes monthly commissions, insurance and stamp duty, which can raise the bank's real TAEG.
Video: how to use the calculator
What a car loan is
A car loan is a form of consumer credit used to buy a vehicle, new or used, repaid in monthly instalments. It usually finances the car price minus your down payment, tends to have lower rates and longer terms than a personal loan, and the bank often keeps a reserva de propriedade (title to the car) until it is paid off. Many offers include a residual value (a larger final payment), which is what sets a car loan apart from a plain personal loan.
Down payment and residual value: what moves the payment
You only finance the price minus your down payment, so a bigger down payment lowers the balance and the interest you pay. The residual value is a slice of the financing kept until the end: during the loan the payment only amortises the difference, which makes it lower, but at the end you must pay that residual value in one go (refinance it, or with some products hand the car back). A larger residual means a lower monthly payment but more total interest, because the capital stays outstanding for longer.
How the payment is calculated
The payment is constant (the "French" amortisation system): each instalment covers that month’s interest on the outstanding balance and repays the rest, down to the residual value at the end. The formula is payment = (financed − residual ÷ (1 + i)^n) × i / (1 − (1 + i)^−n), where i is the monthly rate (the TAN divided by 12) and n is the number of months. With a zero residual it reduces to the payment of a fully-amortising loan.
TAN and TAEG: the difference that matters
The TAN (nominal annual rate) is the rate that drives the payment. The TAEG (the APR) measures the real cost of the credit: it bundles the interest with every charge, such as the arrangement fee, stamp duty and monthly commissions. The TAEG is therefore always higher than the TAN, and it is the number to compare between offers. The calculator shows the TAEG with the upfront fee you enter.
Worked example
On a €25,000 car with a €5,000 down payment (financing €20,000) over 60 months (5 years), at an 8.5% TAN and a €4,000 residual value, the payment is about €356.60 a month. That is lower than the €410.33 you would pay with no residual, but at the end you still owe the €4,000 balloon. Over the loan you would pay about €25,396 (including the final balloon), of which about €5,396 is interest, and the TAEG would be 8.84%.
Frequently asked questions
How is a car loan payment calculated?
What is the residual value in a car loan?
Does the down payment make a difference?
What is the difference between the TAN and the TAEG?
Is a car loan different from leasing or renting?
Are the figures guaranteed?
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Sources
- Crédito aos consumidores: TAN, TAEG e comissões — Banco de Portugal, Portal do Cliente Bancário
- Decreto-Lei n.º 133/2009, regime do crédito aos consumidores (define a TAEG) — Diário da República
Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-13