Car Finance Calculator
Enter your numbers. See the full FCA representative example for PCP, HP, or personal loan. Switch between modes to compare. Every figure calculated transparently.
Your details
PCP result
Total Amount Payable
£29,386.98
This is the total that leaves your account — deposit + all payments + balloon
Representative Example
How car finance calculations work
Car finance uses compound interest. The key number you should focus on is the Total Amount Payable — this tells you exactly how much will leave your bank account over the life of the agreement.
PCP calculations
PCP (Personal Contract Purchase) splits the car's value into three parts: your deposit, your monthly payments, and a final "balloon" payment (also called the Optional Final Payment or Guaranteed Minimum Future Value). Because you're not paying off the full car value during the monthly phase, payments are lower — but you accrue interest on the balloon amount too.
HP calculations
Hire Purchase is a straightforward amortizing loan. Your deposit reduces the amount borrowed, and you pay the rest in equal monthly instalments. At the end, you own the car. No balloon payment, no mileage limits.
Personal Loan calculations
A personal loan from a bank works identically to HP mathematically, but the loan is unsecured — the car isn't used as collateral. This often means better APRs (especially for amounts between £7,500–£25,000) but no Voluntary Termination right.
Which metric matters most?
Monthly payment tells you the cash-flow impact on your budget. Total Amount Payable tells you the wealth impact on your finances. They often point to different "best" deals — PCP wins on monthly, personal loans win on total cost. That's why our comparison tool shows both.