Car Finance Calculator
Calculate your monthly car finance payments for PCP and HP agreements and see the total cost of borrowing.
The Guaranteed Minimum Future Value set by the dealer. Leave at 0 to calculate without a balloon.
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Results are estimates only. Actual APR depends on credit score and lender criteria. Representative APR may differ from your personal rate.
PCP vs HP — what's the difference?
PCP (Personal Contract Purchase) gives you lower monthly payments because you're only financing part of the car's value — the rest is deferred as a balloon payment (GMFV) at the end. When the agreement ends you can pay the balloon to own the car, hand it back, or use any equity as a deposit on a new deal. HP (Hire Purchase) costs more per month but you own the car outright when the agreement ends — there's no balloon payment and no mileage restrictions.
Car finance examples — 9.9% APR, 48 months
Based on a 10% deposit. PCP assumes balloon = 30% of car price. Click any row to load into the calculator.
| Car price | HP monthly | HP total interest | PCP monthly | PCP total interest |
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How car finance interest works
Both PCP and HP use reducing-balance interest applied to the amount you borrow. With HP you borrow the full car price minus your deposit and repay it in equal monthly instalments. With PCP you borrow the car price minus the deposit minus the balloon — keeping monthly payments lower, but leaving a lump sum due at the end.
The APR in ads is the representative APR — offered to at least 51% of successful applicants. Your personal rate depends on your credit score and the dealer's lending partner.
A larger deposit or shorter term reduces total interest significantly, even if it raises the monthly payment.
Frequently asked questions
HP finances the full car price minus your deposit and you own the car outright at the end. PCP defers a chunk of the value as a balloon payment (GMFV), giving you lower monthly payments — but you only own the car if you pay that lump sum at the end of the agreement.
Yes — under the Consumer Credit Act you have the right to settle early. Lenders can charge up to 58 days' interest as an early repayment fee. You can also voluntarily terminate a PCP or HP agreement once you've paid at least 50% of the total amount payable, and hand the car back with nothing more owed.
You have three choices: pay the GMFV balloon payment to own the car outright, hand the car back to the dealer with nothing further to pay (subject to condition and mileage limits), or use any equity above the GMFV as a deposit towards a new car finance deal.