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Car Finance Calculator

Compare PCP and HP monthly payments, total interest and overall cost. Enter your car price, deposit, APR and term to see the full picture.

🚗 PCP & HP comparison 💷 Total cost of credit 🇬🇧 UK rates

Calculate your car finance

Switch between PCP and HP to compare monthly payments and total cost.

£
£
Cash or part-exchange
%
Annual percentage rate
£
The Guaranteed Minimum Future Value (GMFV) on your agreement — leave at 0 for a standard HP-style calculation
Monthly payment
£—
Enter details to calculate
Amount financed —
Total repaid —
Total interest —
Cost of credit —

How to use this calculator

Enter the car price, your deposit (cash or part-exchange), the APR from your finance quote, and the term in months.

Switch between PCP and HP tabs to compare both finance types on the same car. For PCP, enter the balloon payment (GMFV) shown on your agreement — this is the optional final payment that lets you own the car outright.

The calculator shows your monthly payment, total amount repaid, total interest and the full cost of credit — so you can see the real cost beyond the monthly figure.

PCP vs HP: what's the difference?

Personal Contract Purchase (PCP)

With PCP, you pay a deposit and then lower monthly instalments over the term. At the end you have three choices: pay the balloon payment (GMFV) to own the car, hand it back with nothing more to pay, or use any equity as a deposit on a new deal. Monthly payments are lower because you are only financing the depreciation — not the full car value.

Hire Purchase (HP)

With HP you pay a deposit and then monthly instalments that cover the full remaining value of the car. At the end of the term the car is yours automatically. Payments are higher than PCP but there is no balloon, no uncertainty, and you will own the vehicle outright.

Which costs more overall?

HP is usually cheaper overall because you are repaying the full car value each month, meaning less interest accrues. PCP gives lower monthly payments but the balloon payment means you need more cash (or another finance deal) at the end to keep the car.

What affects your monthly payment

  • Car price — the higher the price, the more you borrow and the more interest you pay
  • Deposit — a larger deposit reduces the amount financed and your monthly payment
  • APR — even a 1–2% difference in APR significantly changes the total interest over 3–5 years
  • Term — a longer term reduces monthly payments but increases total interest paid
  • Balloon payment (PCP) — a higher balloon reduces monthly payments but leaves more to pay at the end
  • Credit score — a better credit score typically means access to lower APR deals

Frequently asked questions

Personal Contract Purchase (PCP) is a car finance agreement where you pay lower monthly payments but do not own the car at the end. You can pay a final balloon payment to keep it, hand it back, or use any equity as a deposit on a new deal.
Hire Purchase (HP) means you pay fixed monthly instalments over the term and own the car outright when the final payment is made. Monthly payments are higher than PCP but there is no balloon payment and you will own the vehicle.
HP is usually cheaper overall because the total amount of interest paid is lower — you are repaying the full car value each month rather than deferring a balloon. PCP gives lower monthly payments but the balloon payment means the total you pay can be higher.
UK car finance APRs vary widely — manufacturer deals can start from 0–3%, while personal loan rates for used cars might range from 6–20% depending on your credit score. Always compare the total cost of credit, not just the monthly payment.
Yes. Under the Consumer Credit Act you have the right to settle a car finance agreement early. The lender must give you a settlement figure. On HP you can also use the half rule to hand the car back once you have paid half the total amount owed.

Key terms

APR Total Cost of Credit PCP Hire Purchase Balloon Payment GMFV Representative APR