UK Car Finance Calculator
Compare PCP and hire purchase before you sign. Enter the car price, deposit, part-exchange and APR to see your monthly payment, the final balloon payment and what the car costs in total.
Monthly payment
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Amount financed
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Total interest
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Total of payments
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Total cost of the car
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Everything you pay
Paid upfront
Balance over time
Balance owedInterest paid so far
Payment schedule
| Year | Payment | Principal | Interest | Balance |
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How to use the UK car finance calculator
Choose hire purchase or PCP, then enter the car price, your deposit, the APR and the term. For PCP, enter the optional final payment from your quote. Open Part-exchange and fees to add your current car’s value and any finance still owed on it. The calculator shows your monthly payment, the total interest and the total cost of the car.
HP or PCP?
Switch between the two to compare them with the same deposit and APR. PCP gives a lower monthly payment, but you pay more interest overall and only own the car if you make the final payment. HP costs more each month, but the car is yours at the end. The payment schedule shows how each payment splits between capital and interest.
Assumptions
The APR is fixed and payments are monthly. Excess mileage and damage charges on PCP, insurance and servicing aren’t included. Results are estimates, not a finance offer or financial advice.
Frequently asked questions
What is the difference between PCP and hire purchase?
With hire purchase (HP) your monthly payments pay off the whole car, and you own it after the last one. With PCP part of the price is left as an optional final payment (a balloon), so monthly payments are lower; at the end you pay it to keep the car, hand the car back, or trade it in.
Why does PCP cost more in interest?
You pay interest on the balloon for the whole agreement, because that part of the loan isn’t paid down until the end. Borrowing £22,000 over 48 months at 9.9% APR costs £556.92 a month on HP with £4,732 interest. On PCP with a £10,000 balloon it is £386.28 a month, but £6,541 interest.
What is the optional final payment (GMFV)?
It’s the amount the lender expects the car to be worth at the end, sometimes called the guaranteed minimum future value. The lender sets it from the car’s age and your agreed mileage. Use the figure on your quote for an exact result.
What if I owe money on my part-exchange?
The dealer pays off the finance on your old car and uses what’s left as your deposit. If you owe more than it’s worth, the difference is added to your new finance. Enter both figures to see the effect.
Can I pay off car finance early?
Yes. Under the Consumer Credit Act you can settle early and get a rebate of future interest, though lenders may charge up to 58 days’ interest. Overpaying each month also cuts the interest; add an extra monthly amount to see the saving.
Is the APR shown on adverts the rate I’ll get?
Not always. A representative APR only has to be offered to at least 51% of people who are accepted, so your rate depends on your credit history. Dealer finance for good credit is often around 9.9% to 14.9% APR in 2026.