Thinking of buying a car on finance? This free calculator shows you the monthly payment, total interest and total amount payable for HP (hire purchase) and PCP (personal contract purchase) deals — so you can compare offers before you sign anything. Once you’ve picked a car, check what road tax it will cost you each year.
The guaranteed minimum future value — what the car is expected to be worth at the end of the term.
Estimated monthly payment
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Illustration only — not financial advice. Actual offers depend on the lender, your credit profile and the vehicle. Always read the finance agreement before signing.
HP vs PCP — what’s the difference?
With HP (hire purchase), you pay off the whole car in monthly instalments and own it outright at the end. With PCP (personal contract purchase), your monthly payments only cover the car’s expected depreciation plus interest — at the end of the term you can hand the car back, part-exchange it, or pay the balloon payment to keep it. PCP monthly payments are lower, but you pay more interest overall if you keep the car.
How the calculation works
Enter the car’s price, your deposit, the APR from the finance quote, and the term. For PCP, add the balloon payment (GMFV) from the quote. The calculator uses the standard amortisation formula behind any UK car finance quote, and updates live as you type.
HP vs PCP at a glance
| HP | PCP | |
|---|---|---|
| Own the car at the end | Yes — automatically once paid off | Only if you pay the balloon payment |
| Monthly payments | Higher | Lower |
| Total interest paid | Less | More (if you keep the car) |
| Mileage limits | None | Yes — excess mileage charged |
| End-of-term options | It’s yours | Hand back, part-exchange, or keep |
Finance calculator FAQs
Is PCP or HP cheaper overall?
HP is usually cheaper in total — you pay interest on a shrinking balance and there’s no balloon payment at the end. PCP costs more overall if you keep the car, but the monthly payments are lower because you’re only financing the car’s depreciation.
What is a balloon payment (GMFV)?
The Guaranteed Minimum Future Value — what the finance company expects the car to be worth at the end of a PCP term. You can pay it to keep the car, or hand the car back instead.
Does the calculator include arrangement fees?
No — it covers the core finance maths (deposit, monthly payments, interest, balloon). Lender arrangement fees or optional extras aren’t included, so treat the result as a close illustration, not a quote.
Can I use it for used cars?
Yes — HP and PCP both work the same way on used cars. Just enter the car’s price, the deposit you’re putting down, and the APR from the quote.
Buying electric? Read our guide to whether electric cars pay road tax — and if the car costs over £40,000, check the expensive car supplement which adds to your VED bill.
What to check next
Found a car within budget? Here’s what to verify before you commit.