UK Car Finance Calculator
Model PCP or Hire Purchase using your deposit, quoted nominal interest rate, fees and balloon. Compare instalments with the full cost of ownership.
Rule year: 2026/27 · GBP · Sources checked
Estimated monthly instalment
Equal month-end instalments at a constant nominal rate, then an entered balloon at the same final horizon for PCP. One fee, supplied treatment, no lender day-count/rounding or APR computation. No mileage/damage/return charges, voluntary termination assessment, depreciation forecast, trade-in equity, eligibility or lender approval.
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
Hire Purchase repays the financed principal through regular instalments; this model uses no balloon for that option. PCP leaves an entered final balloon if you want to retain the car. A smaller monthly payment does not make PCP cheaper: compare deposit, instalments, fees and the final payment together. Financing a fee increases principal and interest; paying it upfront changes initial cash. The rate input is a nominal annual interest rate with fees entered separately, not a claim to reproduce the advertised APR. If only APR is known, obtain the contract repayment details rather than treating this approximation as a lender quote.
Formula and rules
Monthly rate = nominal annual rate / 12. Payment = (principal − balloon / (1 + monthly rate)^months) × monthly annuity factor. At zero rate: (principal − balloon) / months. Total to own = deposit + upfront fee + all regular payments + balloon.
Assumptions and limitations
Equal month-end instalments at a constant nominal rate, then an entered balloon at the same final horizon for PCP. One fee, supplied treatment, no lender day-count/rounding or APR computation. No mileage/damage/return charges, voluntary termination assessment, depreciation forecast, trade-in equity, eligibility or lender approval.
Worked example
A £20,000 PCP car with £2,000 deposit leaves £18,000 principal. With zero interest, 36 regular payments and a £6,000 balloon, each instalment is £333.33 before rounding. A £200 upfront fee makes total cash to own £20,200.
- Estimated monthly instalment
- £333.33
- Total paid to own the car
- £20,200.00
- Balloon due to retain car
- £6,000.00
- Interest under entered nominal-rate model
- £0.00
Official sources and review
Reviewed against the sources below on 2026-10-07. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- MoneyHelper: Personal Contract Purchase ↗
PCP has monthly instalments and a final balloon if retaining the vehicle; return conditions, mileage and fees matter.
- MoneyHelper: Hire Purchase ↗
Hire Purchase finances purchase through deposit and instalments; compare total payments, rate and contract fees, not only monthly cost.
Common questions
Can I return the PCP car instead of paying the balloon?
A contract may allow return subject to its conditions. The cash-before-balloon result excludes return charges, mileage and damage costs; it does not establish an entitlement to return.
Is the rate field the advertised APR?
No. This amortisation uses a nominal interest rate and separately entered fees. APR incorporates timing and credit costs; copying APR here may not reproduce a lender's instalments.
Why show both monthly payment and total to own?
A large balloon can reduce instalments while leaving a substantial final payment. Full ownership cost makes that remaining obligation visible.