This tool gives an estimate only and does not include lender-specific terms, acceptance criteria, early settlement rules, or excess mileage/condition charges.
What this PCP finance calculator does
A Personal Contract Purchase (PCP) deal is popular because it can lower monthly payments compared with standard hire purchase. This calculator helps you estimate your monthly payment, total paid over the agreement, and the estimated finance cost based on your vehicle price, deposit, APR, contract length, and optional final payment (also called balloon payment or GFV).
Use it when comparing dealer offers, testing different deposit levels, or deciding whether a higher balloon payment is worth the lower monthly amount.
How PCP car finance works
1) You pay an upfront amount
This usually includes your deposit and any part exchange equity. A bigger upfront contribution generally reduces what you borrow and therefore reduces your monthly payment.
2) You make fixed monthly payments
Your monthly payments mainly cover depreciation and interest during the agreement term. Unlike a standard loan, PCP leaves a larger amount to the end of the contract.
3) You have an optional final payment
At the end, you can usually:
- Pay the optional final payment and keep the car.
- Hand the car back (subject to condition and mileage terms).
- Part exchange into another agreement.
PCP formula (simplified)
This page uses the standard balloon-loan structure:
- Amount financed = car price + fees added to finance − deposit − part exchange
- Monthly rate = APR ÷ 12
- Monthly payment = payment needed so that the remaining balance after the term equals the balloon amount
If APR is 0%, the monthly payment is simply the financed amount minus balloon, divided by months.
How to use the calculator effectively
Start with a realistic car price
Include the on-the-road price you expect to agree with the dealer. If fees are financed, enter them in the fees field.
Test multiple deposit scenarios
Even a modest increase in deposit can reduce monthly payments and total finance cost. Try at least three deposit levels before deciding.
Check different term lengths
Longer terms can reduce monthly cost but increase total paid over time. Compare 36, 48, and 60 months to see trade-offs.
Understand mileage impact
Mileage allowance can influence future value assumptions and real-world deal pricing. Enter your true yearly mileage to avoid excess mileage charges later.
Common mistakes to avoid with PCP
- Focusing only on monthly payment and ignoring total amount payable.
- Choosing an unrealistically low mileage allowance.
- Not budgeting for the optional final payment if you plan to keep the car.
- Skipping insurance, maintenance, and tyre costs in affordability planning.
- Assuming all lenders use the same fee and settlement structure.
PCP vs HP vs leasing
PCP
Lower monthly payments, optional final payment, and end-of-term flexibility.
Hire Purchase (HP)
No large final payment in most cases, higher monthly payments, clearer path to ownership by end of term.
Personal lease
You pay for use of the car, usually no ownership option, and often strict mileage/condition terms.
Final thoughts
A good PCP deal is about more than just a low monthly figure. Compare APR, fees, deposit requirements, mileage limits, and end-of-contract options together. Use this calculator to create a shortlist of realistic scenarios, then request written quotes from multiple lenders or dealers to verify exact terms.