Car Finance Calculator — PCP, HP & Loan

How this calculator works

Enter the car price, your deposit, the APR from your quote and the term in months. We run a standard amortisation calculation — the same maths every UK lender uses — to work out a level monthly payment, the total amount you’ll pay, and the total cost of credit (the interest on top of the car price). For PCP we defer the optional final payment (the Guaranteed Future Value) so only the depreciation is financed, which is why PCP monthlies are lower. Everything runs in your browser; nothing is sent anywhere unless you ask us to email you the PDF.

What the numbers mean

Monthly payment is what leaves your account each month. Total amount payable is everything you hand over across the deal — deposit, every monthly payment, and any final balloon. Total cost of credit is that total minus the car’s price: the real cost of borrowing. A deal with a low monthly but a high total cost of credit is an expensive deal dressed up to look cheap.

PCP vs HP vs personal loan — which is which?

PCP (Personal Contract Purchase) keeps monthly payments low because you only finance the car’s depreciation over the term, not its full value. A large optional final payment (the Guaranteed Future Value, or “balloon”) is deferred to the end. At that point you either pay it to own the car, hand the car back, or part-exchange. You don’t own the car until that final payment is made, and mileage limits apply.

HP (Hire Purchase) spreads the full price (minus deposit) across the term, so monthly payments are higher but there’s no balloon — you automatically own the car once the last payment clears. No mileage limits.

Personal loan is unsecured borrowing from a bank that you use to buy the car outright, so you own it from day one and can sell whenever you like. The maths is the same as HP (full amount amortised over the term); the difference is the loan isn’t secured against the car, and the APR depends on your credit rather than the dealer’s finance offer.

Lower monthly payment isn’t the same as cheaper. PCP usually has the lowest monthly cost but the highest total cost if you keep paying for cars you never own. Compare the total amount payable, not just the monthly figure.

UK things worth knowing before you sign

• Representative APR isn’t a guarantee. Under FCA rules a lender only has to offer the advertised representative APR to 51% of accepted applicants. Your quoted rate can be higher.
• Voluntary termination (VT). On regulated HP and PCP agreements you have the legal right to hand the car back once you’ve paid 50% of the total amount payable (Consumer Credit Act 1974, s.99). That 50% includes the balloon on PCP.
• PCP mileage matters. The Guaranteed Future Value assumes an agreed annual mileage. Go over it and you’ll pay an excess-mileage charge (often 5–15p a mile) at the end.
• 0% deals are real but conditional. Manufacturer 0% APR offers are genuine — the maker subsidises the interest — but they often require a bigger deposit or are tied to a specific trim. Run the numbers against a cash-plus-loan purchase before assuming 0% wins.
• Settle early and you may save. Ask the lender for a settlement figure; the Consumer Credit Act caps the interest rebate so paying off early is usually cheaper than running to term.