Loans

Car Finance Calculator

Compare the lower monthly payment of a PCP-style structure with the simplicity of hire purchase, while keeping the balloon payment visible rather than treating it as free money.

Free calculatorInputs saved only in this browser

Vehicle & deposit

Enter the deal value before comparing finance structures.

£
£
£
Enter only the equity actually being used in the new agreement.
months

HP & PCP assumptions

Use quotes from real products when you have them.

%
%
£
Often called the optional final payment or GMFV.
£

Your estimate

Use the result as a planning guide and change inputs to test the assumptions that matter most.

How this calculator works

Both examples start with the same vehicle price, cash deposit and part-exchange value. Hire purchase amortises the financed balance to zero. The PCP-style calculation leaves the entered optional final payment outstanding and solves for the monthly payment required before that balloon.

How to use it

  1. Enter the car price, cash deposit and any part-exchange value.
  2. Choose the finance term.
  3. Add the HP APR and PCP APR you want to compare.
  4. For PCP, enter the quoted optional final payment or guaranteed future value.
  5. Compare monthly payments and the total amount required if you ultimately keep the car.

Assumptions and limitations

This is an educational comparison, not a quotation. Real PCP agreements may include mileage limits, condition charges, option-to-purchase fees and deposit contributions. APR and quoted monthly payments can also differ because of provider-specific fee treatment.