Car finance calculator

Enter the price of the car, your deposit, the APR and the length of the agreement. For a PCP, add the final payment. The calculator shows the monthly payment, the total you would pay and how much of that is the cost of credit.

Monthly payment

£304.84

£24,632.32 in total, of which £4,632.32 is the cost of credit

Your details

Type PCP Hire purchase

Car price

Deposit

APR %

Length

Final payment (balloon)

CalculateReset

At a glance

Figure	Amount
Monthly payment	£304.84
Final payment	£8,000.00
Total amount payable	£24,632.32
Cost of credit	£4,632.32

Option to purchase fee

How this was worked out

1. Amount borrowed: £20,000.00 − £2,000.00 = £18,000.00
2. Monthly rate: (1 + 9%)^(1 ÷ 12) − 1 = 0.720732%
3. Monthly payment: (£18,000.00 − £8,000.00 × (1 + i)^−48) × i ÷ (1 − (1 + i)^−48) = £304.84
4. Final payment: £8,000.00 + £0.00 = £8,000.00
5. Total amount payable: £2,000.00 + (£304.84 × 48) + £8,000.00 = £24,632.32
6. Cost of credit: £24,632.32 − £20,000.00 = £4,632.32

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What the calculator assumes

• A fixed APR for the whole agreement and equal monthly payments.
• The APR you enter includes the charges for the credit. Other costs, such as a documentation fee added separately, are not included unless you enter them.
• For a PCP, the final payment is the amount set out in the agreement, and the option to purchase fee is paid with it.
• Monthly payments are rounded to the penny.

PCP and hire purchase

With hire purchase (HP) you pay off the whole price, less your deposit, in monthly payments. When the last payment is made, the car is yours.

With personal contract purchase (PCP) a large part of the price is held back to the end as a final payment, sometimes called the balloon. Your monthly payments cover the rest, plus interest on the whole amount you borrowed, including the part held back. That is why PCP payments are lower than HP payments for the same car, while the total cost can be higher. At the end you can usually pay the final payment and keep the car, hand it back, or use any value above the final payment towards another car. Mileage limits and the condition of the car can affect what happens if you hand it back.

Reading the result

The total amount payable adds up your deposit, every monthly payment and, for a PCP, the final payment and any option fee. The cost of credit is that total minus the cash price of the car. It is the extra you pay for spreading the cost.

Try changing one figure at a time. A bigger deposit lowers both the monthly payment and the cost of credit. A longer agreement lowers the monthly payment but usually raises the cost of credit.

What it leaves out

• Insurance, servicing, road tax and fuel.
• Charges for extra mileage or damage when a PCP car is handed back.
• Part exchange and dealer contributions.

For a plain personal loan, use the loan repayment calculator. To see what a monthly payment means against your pay, the take-home pay calculator shows what you keep each month.

Official guidance

• Consumer credit on the Financial Conduct Authority

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