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Free tool · United Arab Emirates

Car loan calculator for the UAE 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter the car price, the down payment and the bank's flat rate to see the monthly instalment, the insurance and the full cost of the car. Switch to "Which car can I afford?" to find the most expensive car your salary covers under the rules in the UAE.

Short answer

Example: a car costing 240,000 UAE dirhams, with 192,000 financed over 60 months at a 2.5% flat rate, costs about 3,600 UAE dirhams a month before insurance. A car loan may not exceed 80% of the car's value (at least 20% down payment). The maximum term is 60 months.

Car and finance details

Lowers the instalment, raises the total cost
⏩Early repayment
Shortens the term and cuts the profit

Repayment schedule

The yearly schedule appears after you calculate.

How the calculation works

  • Flat rate: car loans are usually quoted as a flat rate on the amount financed, spread evenly over the term.
  • Balloon payment: part of the price is left to the end of the contract. The instalment falls, but you pay profit on that part for the whole term.
  • Insurance: comprehensive insurance usually costs 3% to 5% of the car price a year. The calculator adds it so you see the real monthly cost.

Islamic banks call the bank's return "profit" rather than interest; the arithmetic is the same.

Car finance rules in the UAE

  • A car loan may not exceed 80% of the car's value (at least 20% down payment).
  • The maximum term is 60 months.
  • The car instalment counts towards the 50% instalment cap.
  • Early repayment: The early repayment fee on a car loan is 1% of the outstanding balance.
  • Policy rate: The Central Bank of the UAE raised the base rate to 3.9% from 17 September 2026 (secondary source).

Sources

  1. Central Bank of the UAE: Regulations on Bank Loans and Other Services Offered to Individuals, C 29/2011
  2. Central Bank of the UAE: Mortgage Loans Regulation, C 31/2013
  3. Central Bank of the UAE: 2020 amendment to mortgage financing ratios
  4. UAE government official portal: loans for individuals

Frequently asked questions

What is a balloon payment in car finance?

A large sum deferred to the end of the contract. It lowers the monthly instalment, but you pay profit on it for the whole term and then pay it in full or refinance it. The total cost is always higher.

What is the longest term for car finance?

60 months in the UAE.

Is insurance included in the car instalment?

With lease-to-own finance it usually is, and comprehensive insurance usually costs 3% to 5% of the car price a year. The calculator adds it so you see the real cost.

Which car can I afford on my salary?

Choose "Which car can I afford?": the calculator takes the salary deduction cap and your existing instalments and works out the most expensive car the available instalment covers, with the down payment.

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Results are estimates for information only. Banks set their own rates and fees within these rules, so check the offer you receive.

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