EN

PCP Calculator

Work out the monthly cost of Personal Contract Purchase car finance and compare it with hire purchase.

The on-the-road price after any discount.
Cash deposit plus any deposit contribution and part-exchange.
The Guaranteed Minimum Future Value, as % of the price or in £.
Usually 24–48 months.
Often around £10, paid with the final payment.
Monthly PCP payment— / month
  • Hire purchase (HP) payment, no balloon—
  • PCP saves you each month—
  • Optional final payment (GMFV)—
  • Credit amount—
  • Total interest—
  • Extra interest vs. HP—
  • Total amount payable (if you keep the car)—

100% private. Everything is calculated in your browser. Nothing you type is sent or stored on a server.

Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

Advertisement

How PCP finance works

With Personal Contract Purchase (PCP) you pay a deposit, then monthly payments, and at the end there is an optional final payment, also called the balloon or GMFV (Guaranteed Minimum Future Value). The lender sets the GMFV from the expected value of the car, your annual mileage and the term. Because that amount is deferred, PCP payments are lower than hire purchase (HP) payments for the same car.

Monthly payment = (credit − GMFV ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n) credit = cash price − deposit, r ≈ APR ÷ 12, n = months

The calculator treats the APR as a simple monthly rate, so results can differ by a few pounds from a dealer quote.

Worked example

A £25,000 car with a £2,500 deposit, a 40% GMFV (£10,000), 7.9% APR and 48 months costs about £370 a month. On HP, with no balloon, the payment would be about £548. If you keep the car you pay the GMFV at the end, so the total amount payable is higher than on HP.

Your three choices at the end of a PCP

  • Pay the optional final payment (plus the option-to-purchase fee) and keep the car.
  • Hand it back and pay nothing more, apart from any excess mileage or damage charges.
  • Part-exchange it: if the car is worth more than the GMFV, the difference (equity) can go towards your next deposit.

Good to know

  • Under the Consumer Credit Act you can usually end the agreement early once you have paid half of the total amount payable (voluntary termination).
  • Agree a realistic annual mileage — going over usually costs a set amount per mile.
  • Compare the APR and the total amount payable, not just the monthly payment. If you never plan to own the car, leasing (PCH) may cost less: see the car lease calculator.
Advertisement

Frequently asked questions

How is a PCP payment calculated?

The lender finances the price minus your deposit but leaves the GMFV unpaid until the end. The monthly payments repay the rest, plus interest on the whole balance.

What is the GMFV on PCP?

The Guaranteed Minimum Future Value is the lender's estimate of the car's value at the end. It is the optional final payment if you want to keep the car.

Is PCP more expensive than HP?

Monthly payments are lower on PCP, but if you keep the car the total amount payable is usually higher, because you pay interest on the GMFV for the whole term.

Can I hand the car back at the end of PCP?

Yes. If it is within the agreed mileage and in fair condition, you can hand it back without paying the final payment.

Can I end a PCP agreement early?

Usually yes. Once you have paid 50% of the total amount payable you can normally use voluntary termination. You can also ask for a settlement figure at any time.

More lease calculators