Simply Calculated

£381.67 a month

Workings

PCP car finance calculator

A PCP deal’s monthly payment and total cost, when you could hand the car back, what paying off early would cost, and how hire purchase compares. We’ve filled in an example: change it to yours.

Consumer Credit Act rulesLast checked 6 October 2026

Monthly payment

£381.67

You’d pay £381.67 a month for 48 months, then a final payment of £10,000.00: £31,320.16 in total, including a £6,320.16 charge for credit.

Total amount payable
£31,320.16
Charge for credit
£6,320.16
Final payment
£10,000.00

An estimate: lenders charge interest daily, so their figures can differ by a few pounds.

Your PCP deal

The price of the car, with any options
What you pay upfront yourself
Not counting the final payment
Not the ‘fixed rate’ on your quote
Including the option-to-purchase fee

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What people ask next

Workings

The amount you borrow
Cash price£25,000.00
Your deposit(£3,000.00)
Part-exchange, netNone entered (see More options)£0.00
Dealer deposit contributionNone entered (see More options)£0.00
Amount of credit£22,000.00
The monthly payment
Monthly rate(1 + 9.9%)^(1/12) − 1: the monthly rate the APR is built from0.7898%
Amount of credit£22,000.00
Final payment in today’s money£10,000.00 due in month 49, ÷ (1 + 0.7898%)^49(£6,801.31)
Left for the monthly payments£15,198.69
Spread over 48 payments with interestr ÷ (1 − (1 + r)^−48), where r is the monthly rate. Rounded to the penny× 0.025112
Monthly payment£381.67
What you pay in total
Your deposit£3,000.00
48 monthly payments48 × £381.67£18,320.16
Final paymentDue in month 49. Includes the option-to-purchase fee£10,000.00
Total amount payable[3]£31,320.16
The charge for credit
48 monthly payments£18,320.16
Final payment£10,000.00
Less the amount of credit(£22,000.00)
Charge for credit£6,320.16
The mileage limit
Mileage limit10,000 miles a year × 49 months ÷ 1240,833 miles

Check a month

Where you’d stand part-way through: what it would take to hand the car back, or to pay the deal off.

After this many monthly payments
Hand the car back at month 24
Total amount payable£31,320.16
Half of it[2]You can end the deal once you’ve paid this much (Consumer Credit Act ss.99 and 100)£15,660.08
Paid by month 24£3,000.00 upfront + 24 × £381.67(£12,160.08)
More to pay to hand it back£3,500.00

You reach half at month 34. After that, you can hand the car back with nothing more to pay.

Plus any arrears and damage beyond fair wear and tear. Some lenders also charge for miles over the limit when you hand a car back this way, but those charges are often disputed.

Pay it off at month 24
Balance after 24 payments£22,000.00 × (1 + r)^24 − £381.67 × ((1 + r)^24 − 1) ÷ r£16,529.34
28 days’ interest[4]× (1 + 9.9%)^(28 ÷ 365): the figure is for 28 days after you ask£120.13
Settlement figure£16,649.47

Settlement figure: £16,649.47 to £16,780.97

The higher figure is if the lender adds the extra month of interest it’s allowed to. Carrying on would cost £19,160.08 (24 more payments and the £10,000.00 final payment), so settling saves £2,510.61.

The lender can also ask for compensation of up to £166.49 (1% of what you repay early, as it’s over £8,000 with more than a year left), but never more than the interest you save.

Compared with handing the car back: voluntary termination at month 24 would cost £3,500.00 more, but you’d give up the car. Settling costs £16,649.47 and the car is yours.

PCP or hire purchase?

The same £22,000.00 borrowed at 9.9% APR over 48 months, but with no final payment.

PCP

£381.67a month

Final payment
£10,000.00
Total amount payable
£31,320.16
Interest (charge for credit)
£6,320.16
You reach half
Month 34
To hand it back at month 24
£3,500.00

At the end: pay £10,000.00 to keep the car, hand it back, or part-exchange it.

Hire purchase

£552.47a month

Final payment
None
Total amount payable
£29,518.56
Interest (charge for credit)
£4,518.56
You reach half
Month 22
To hand it back at month 24
Nothing more

The car is yours after the last payment.

PCP’s monthly payment is £170.80 lower, but it costs £1,801.60 more in interest, and the car is only yours if you make the £10,000.00 final payment.

Had car finance before?

The FCA has set up a compensation scheme for some past car finance deals, for example where the dealer’s commission wasn’t properly disclosed. Part of the scheme was suspended in July 2026, pending an Upper Tribunal hearing, so check the FCA’s car finance complaints page for where it stands. You don’t need a claims company: you can complain to your lender yourself, for free, and keep all of any compensation.

Not covered: leasing (personal contract hire), refinancing the final payment, arrears, GAP insurance and service plans, and balloon hire purchase.

How a PCP payment is worked out

With PCP you borrow the cash price less your deposit, any part-exchange and any dealer contribution. A large part of that, the final payment, is left until the end, so the monthly payments only cover the rest. You pay interest on the whole amount all the way through, which is why PCP payments are lower than hire purchase but the total interest is higher. PCP vs HP.

The lender sets the final payment as its estimate of what the car will be worth at the end, for your mileage. On real four-year deals it’s usually between 32% and 55% of the price, and it includes a small option-to-purchase fee. We turn the APR into a monthly rate the way the APR is defined, which matches lenders’ own published examples to the penny. How a PCP final payment is set.

Handing the car back: voluntary termination

The Consumer Credit Act lets you end a PCP or hire purchase deal and hand the car back once you’ve paid half the total amount payable. That total includes your deposit and the final payment, so on PCP you reach half late, often two-thirds of the way through or later. Before then, you can still hand it back by paying the difference up to half. Voluntary termination: your rights.

You’ll also owe any arrears and the cost of damage beyond fair wear and tear. Some lenders charge for miles over the limit when you end a deal this way, but these charges are often disputed.

Paying off early, and how hire purchase compares

You can pay off car finance at any time. Ask the lender for a settlement figure: it’s what you still owe, plus interest up to 28 days after you ask, and the lender may add up to a month more. If you repay more than £8,000 early in a year, the lender can ask for compensation of up to 1% of it (0.5% in the last year), but never more than the interest you save.

Hire purchase spreads the whole amount over the monthly payments, so they’re higher, but you pay less interest and the car is yours after the last one. With PCP you choose at the end: pay the final payment and keep the car, hand it back, or part-exchange it.