Work out your monthly PCP payment, the optional final payment (balloon / GMFV), and the total to own the car if you choose to keep it. Enter the figures from your quote — it takes about 20 seconds.
PCP Payment Calculator
UK Personal Contract Purchase — illustrative, not a quote
• Own it — pay the £10,000 final payment. Estimated total to own ≈ £31,358.
• Return it at the scheduled end — this avoids the final payment. You’ll have paid about £21,358 (deposit + monthly payments), subject to the agreement’s terms and any excess-mileage or condition charges.
• Part-exchange any equity toward your next deal.
How this PCP calculator works
PCP (Personal Contract Purchase) finances the car price minus your deposit, but a large chunk — the optional final payment, also called the balloon or Guaranteed Minimum Future Value (GMFV) — is deferred to the end. Your monthly payments cover the gap between the amount borrowed and that final payment, plus interest on the whole balance for the full term.
The calculator uses the standard amortising formula for a loan with a deferred final payment. It treats the APR you enter as the representative (effective annual) APR as defined by the FCA, and converts it to a monthly rate using (1 + APR)1/12 − 1. It is illustrative: it excludes arrangement fees, the option-to-purchase fee, mileage limits and end-of-contract condition charges, so always check the total amount payable on your own agreement.
Worked example
On a £25,000 car with a £2,500 deposit, 9.9% APR, a 48-month term and a £10,000 final payment, you finance £22,500. Because £10,000 is deferred to the end, the monthly payments are lower than HP — but interest still runs on that £10,000 for four years, so the total cost of credit is higher than many people expect. Enter your own numbers above to see yours.
Your three choices at the end of a PCP
- Pay the final payment (the optional balloon) and keep the car — this is your estimated total to own.
- Return the car at the scheduled end — this avoids the optional final payment; you will have paid your deposit and monthly payments, subject to the agreement’s terms and any excess-mileage or condition charges.
- Part-exchange any equity (if the car is worth more than the final payment) as the deposit on your next deal.
What the calculator can’t see
Real quotes include fees and limits this tool leaves out: arrangement and option-to-purchase fees, your annual mileage limit (excess miles are charged per mile), and condition charges if you return the car with damage. Treat the result as a close estimate to sense-check a dealer quote, not a binding figure.
Related PCP guides & tools
PCP calculator FAQs
How is a PCP monthly payment calculated?
You finance the car price minus your deposit. An optional final payment (the balloon) is deferred to the end, so the monthly payments cover the rest, with interest charged on the whole outstanding balance (including the deferred balloon) for the full term.
What is the balloon payment or GMFV?
It is the optional final payment set at the start — the car’s guaranteed minimum future value. Pay it to own the car, or return the car instead and avoid it (subject to the agreement’s terms and any excess-mileage or condition charges).
Is this PCP calculator accurate?
It follows how UK PCP agreements are structured and quotes figures in pounds, and treats your APR as the FCA representative (effective) APR. It is illustrative: it excludes fees, mileage limits and condition charges, so compare the total amount payable on your own agreement.
What APR should I enter?
Use the representative APR from your quote. If you only have an idea, 8–13% is typical for UK PCP, but your actual rate depends on your credit profile and the lender.
Illustrative estimate, not a quote or financial advice. APR is treated as the representative (effective annual) APR per the FCA and converted to a monthly rate as (1 + APR)1/12 − 1; because a lender’s advertised APR also builds in fees, their exact figure may differ slightly. Figures are rounded to the nearest pound. Always confirm the total amount payable on your own agreement.