Car Finance Calculator UK
Compare PCP, hire purchase and a personal loan on the same car: monthly payments, total cost, the balloon payment and what it costs to hand the car back.
Last updated: October 2026
The car and the deal
Enter part-exchange net of any finance still owed on your current car.
PCP details
Optional. Used to estimate your equity.
Fees (HP and PCP)
Paid with the first payment
Paid with the last payment
Side by side
| HP | PCP (buy at end) | Personal loan | |
|---|---|---|---|
| Amount financed | £18,000.00 | £18,000.00 | £18,000.00 |
| Monthly payment | £452.02 | £314.30 | £452.02 |
| Number of payments | 48 | 48 | 48 |
| Deposit and part-exchange | £2,000.00 | £2,000.00 | £2,000.00 |
| Optional final payment (balloon) | None | £8,000.00 | None |
| Fees (admin and option to purchase) | £0.00 | £0.00 | £0.00 |
| Interest | £3,697.02 | £5,086.64 | £3,697.02 |
| Total charge for credit | £3,697.02 | £5,086.64 | £3,697.02 |
| Total amount payable | £23,697.02 | £25,086.64 | £23,697.02 |
| APR including fees | 9.9% | 9.9% | 9.9% |
Monthly rate used: 0.7898% for 9.9% APR, i.e. (1 + APR)1/12 minus 1. Total charge for credit is total payable less the cash price.
At the end of the PCP
Handing back costs £17,086.64 for 48 months of use, about £355.97 a month all in. Excess mileage at your estimate: 0 miles over the term. Damage beyond fair wear and tear is charged on top.
Amount owed over time
The PCP line ends at the balloon: that is what you still owe if you want to keep the car.
Half the total amount payable is £11,848.51 on HP and £12,543.32 on PCP. Counting your deposit, you reach that point on HP after payment 22 of 48, and on PCP after payment 34 of 48. Before then, handing back means paying the difference.
How it works
All three options borrow the same amount: the car price less your deposit and part-exchange. The difference is what you repay each month and what is left at the end.
Hire purchase (HP) spreads the whole amount financed over the term, like a loan. Once every payment and any option to purchase fee is paid, the car is yours. Personal contract purchase (PCP) defers part of the price, the balloon or guaranteed minimum future value (GMFV), to the end. You pay interest on the whole amount financed for the whole term, but only repay the part above the balloon, so monthly payments are lower. At the end you either pay the balloon and keep the car, hand it back, or part-exchange it. A personal loan pays the dealer in full, so you own the car straight away and can sell it whenever you like.
APR to monthly rate. UK lenders calculate APR under the FCA Consumer Credit sourcebook (CONC App 1.1), which discounts each payment over time measured in years, with a month counted as one twelfth of a year. That makes the APR an annual compounded rate, so the monthly rate is (1 + APR) to the power 1/12, minus 1, not APR divided by 12. At 9.9% APR that is 0.7898% a month, compared with 0.8250% if you simply divided by 12.
Worked example. A £20,000 car with a £2,000 deposit over 48 months at 9.9% APR. On HP the payment is £452.02 a month, £23,697.02 in total including the deposit, with £3,697.02 of interest. On PCP with an £8,000 balloon the payment drops to £314.30, but interest rises to £5,086.64 because the balloon is borrowed for the full term. Hand the car back and you have paid £17,086.64; keep it and the total is £25,086.64. At 0% APR the PCP payment is simply the amount financed less the balloon, divided by the number of months: £208.33.
The balloon is set by the lender at the start as its estimate of the car's minimum value at the end, based on the term and the mileage allowance you agree. It is guaranteed: if the car is worth less than the balloon, you can hand it back and owe nothing more, provided it is within the mileage allowance and in good condition.
If the car is worth more than the balloon, the difference is your equity. You can use it as a deposit on your next car with the same dealer, or sell the car and settle the finance yourself. Enter an expected market value above to see an estimate. Used car prices move, so treat any equity as uncertain until the end.
Estimates only. Payments are assumed monthly in arrears with the balloon due at the end of the final month; your lender's figures may differ slightly due to payment dates and fee timing. This is not financial advice.
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Reviewed by Alexandre Bernier, LLM (UK), CFP®
Educational tool: estimates only. Not individual financial, investment, tax or legal advice. Using it does not create an adviser-client relationship. Rules and figures change; check them against current HMRC and GOV.UK guidance and speak to a qualified professional. Editorial policy →
Sources
Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.