Calculator
PCP Calculator
Personal Contract Purchase is the UK's most popular car finance product — over 80% of new car finance agreements use it. Enter your numbers to see the full cost breakdown.
Your details
PCP result
Total Amount Payable
£29,386.98
This is the total that leaves your account — deposit + all payments + balloon
Representative Example
PCP looks cheap because it hides the big number at the end.
A £25,000 car on PCP at 6.9% APR over 48 months might cost £299/month. That sounds affordable. But the £10,500 balloon payment at the end means your total outlay is £24,852 — nearly the car's original price — and you still don't own it unless you pay the balloon.
How PCP works — the three-part split
PCP divides the car's value into three portions:
- Your deposit — typically 10% of the car's on-the-road price. Reduces the amount you borrow.
- Monthly payments — cover the depreciation (the difference between the car's price and its predicted future value) plus interest on the full amount borrowed.
- Balloon payment (Optional Final Payment) — the Guaranteed Minimum Future Value (GMFV) set by the lender at the start. At the end of the term, you choose: pay it and own the car, return the car, or part-exchange into a new PCP.
The critical thing most adverts don't emphasise: you pay interest on the balloon amount for the entire term, even though you don't pay it down monthly. This is why PCP total cost of credit is typically higher than HP for the same car.
What the calculator shows you
Monthly Payment
Your regular outgoing. Useful for budgeting — but this number alone doesn't tell you whether PCP is good value.
Balloon Payment
The lump sum due at the end. If you want to own the car, you need this available — cash, refinance, or equity from the car's actual value.
Total Amount Payable
Deposit + all monthly payments + balloon. This is the real cost if you keep the car. Compare this number across deals, not the monthly.
Total Cost of Credit
How much the finance costs you in interest. Total Amount Payable minus the car's cash price. The pure cost of borrowing.
PCP vs HP vs personal loan
PCP wins on monthly payment. HP wins on total cost if you plan to own the car. A personal loan often beats both on APR (especially £7,500–£25,000) — but there's no Voluntary Termination right with an unsecured loan.
Use the calculator's mode switcher to compare all three on the same car price. The right answer depends on your situation:
- Keeping the car 5+ years? HP or personal loan. PCP's balloon makes long-term ownership expensive.
- Changing every 3 years? PCP can work — but only if the car holds its value above the GMFV.
- Need low monthly payments? PCP delivers the lowest — but the total cost is highest.
The mileage trap
Every PCP agreement sets an annual mileage limit — typically 6,000 to 15,000 miles per year. Go over, and you pay an excess mileage charge when you return the car. Rates vary from 3p to 30p per excess mile depending on the car's value.
On a 3-year deal with a 10,000-mile limit, exceeding by just 2,000 miles per year at 8p/mile costs an extra £480 at handback. On a premium car at 20p/mile, that's £1,200. Factor this into your calculation honestly — most people underestimate their mileage.
The 50% rule (Voluntary Termination)
Under the Consumer Credit Act 1974, you have the right to voluntarily terminate a PCP agreement once you've paid 50% of the Total Amount Payable. This includes your deposit and all payments made. If the car is in good condition, you can hand it back and walk away with nothing further to pay.
This is a legal right, not a favour from the lender. Some lenders make it difficult — check our lender reviews for settlement scores.