Car Finance Calculator
Use this car finance repayment calculator to work out the monthly payment, final payment and total cost of PCP, hire purchase or a car loan.
Checked 20 October 2026.
Also called the balloon payment or guaranteed minimum future value. The lender sets it at the start. You only pay it if you want to keep the car.
For example an option to purchase fee, if your quote has one.
Monthly payment
£398.45
This is an estimate. Your lender's figures may differ.
- Amount financed
- £18,000.00
- Final payment
- £7,000.00
- Total amount payable
- £23,344.31
- Total cost of credit
- £3,344.31
- Deposit
- £2,000.00
- Term
- 36 months
Total amount payable is the unrounded monthly payment times the number of months plus the deposit, final payment and fees, so it can differ from the rounded payment times months by a few pence.
The same car as HP or a car loan
- Monthly payment
- £569.46
- Total amount payable
- £22,500.47
- Total cost of credit
- £2,500.47
With PCP you must pay the final payment to keep the car.
You may be able to end the agreement once you have paid about half of the total amount payable (about £11,672.15, reached after 25 monthly payments). Check your agreement for the exact figure. MoneyHelper says the car goes back to the dealer and you get no money back.
Year by year balance
| After month | Balance owed |
|---|---|
| 12 | £14,644.40 |
| 24 | £10,986.79 |
| 36 | £7,000.00 |
Show the working
- Amount financed = car price minus deposit = £18,000.00.
- Monthly rate used: 0.007207. This is (1 + APR) to the power of 1/12, minus 1.
- Monthly payment = (amount financed minus the final payment discounted back to today) × monthly rate ÷ (1 − (1 + monthly rate) to the power of minus 36) = £398.45. At 0% it is (amount financed minus final payment) ÷ months.
- Total amount payable = deposit + payment × 36 + final payment + fees = £23,344.31. Total cost of credit = total amount payable minus car price = £3,344.31.
- Each month the balance grows by the monthly rate and the payment comes off. At the end of the term the balance left equals the final payment.
Nothing you enter leaves your device. This is not financial advice or a credit offer. Check the APR, total amount payable, final payment and any charges on your finance agreement before you sign.
What is the difference between PCP and hire purchase?
MoneyHelper describes a PCP as a contract that gives you access to a car with the option to buy it at the end by paying a final payment set at the start. With HP or a car loan in this calculator there is no final payment, so the monthly payments clear the whole amount.
The FCA describes PCP as a form of hire purchase where the car's value at the end is assessed at the start and deferred. For an unsecured personal loan, try the loan calculator.
How is a PCP monthly payment worked out?
MoneyHelper says PCP payments cover the car's value minus your deposit and the final payment, plus interest charged on the car's value minus the deposit.
This PCP calculator uses the standard repayment formula with the final payment discounted back to today, and turns an APR into a monthly rate with (1 + APR)^(1/12) - 1. As a hire purchase calculator or car loan calculator, the final payment is set to zero.
PCP and HP payments on a £20,000 car
| APR | HP 36 months | HP 48 months | PCP 36 months, £7,000 final payment | PCP 48 months, £6,000 final payment |
|---|---|---|---|---|
| 6% | £546.30 | £421.42 | £367.92 | £310.15 |
| 9% | £569.46 | £444.93 | £398.45 | £339.87 |
| 12% | £592.60 | £468.61 | £428.56 | £369.34 |
| 15% | £615.70 | £492.40 | £458.27 | £398.56 |
Illustrative rates and final payments only, not offers. Payments in arrears, no fees. Your lender sets the final payment.
| APR | HP 36 months | HP 48 months | PCP 36 months, £7,000 final payment | PCP 48 months, £6,000 final payment |
|---|---|---|---|---|
| 6% | £1,666.78 | £2,228.17 | £2,245.21 | £2,887.30 |
| 9% | £2,500.47 | £3,356.88 | £3,344.31 | £4,313.63 |
| 12% | £3,333.51 | £4,493.07 | £4,428.32 | £5,728.15 |
| 15% | £4,165.33 | £5,635.18 | £5,497.64 | £7,130.68 |
Illustrative rates and final payments only, not offers. Payments in arrears, no fees. Your lender sets the final payment.
What happens at the end of a PCP?
Per MoneyHelper you can pay the final payment and keep the car, hand the car back (the dealer checks damage and mileage and you may face charges), start a new PCP, or refinance the final payment.
You do not own the car during the contract, and you pay for insurance, fuel, repairs, maintenance and fines.
Can I end car finance early?
MoneyHelper says voluntary termination is available once you have paid 50% of the total contract value including the final payment. The car goes back to the dealer and you get no money back.
If you are struggling, contact the finance company before missing payments. Within 30 days you can usually get a full refund for a fault under consumer rights, according to MoneyHelper. The calculator shows an estimate of the 50% point only.
Common questions
How much is a £20,000 car on finance each month?
It depends on the deposit, rate and term. With a £2,000 deposit at 9% APR the payment is £444.93 on HP over 48 months, or £339.87 on a 48 month PCP with a £6,000 final payment. Examples only, not offers.
Is PCP cheaper than HP?
The monthly payment is lower, but the total cost of credit can be higher, because you pay interest on the final payment amount too. On £20,000 with a £2,000 deposit at 9% APR over 36 months, HP costs £569.46 a month and £2,500.47 of credit, while a PCP with a £7,000 final payment costs £398.45 a month and £3,344.31 of credit, and you still pay the £7,000 to keep the car.
How big a deposit do I need?
MoneyHelper says a PCP deposit is usually at least 10% of the car's value, paid when you sign, and a larger deposit lowers your monthly payments.
Does mileage change the payment?
PCP deals usually include a yearly mileage limit, often 10,000 miles according to MoneyHelper. A higher allowance raises the monthly payment and going over the limit usually brings charges. This calculator does not include mileage charges.
Will my dealer's quote match this calculator?
Not always. MoneyHelper's illustration of a £20,000 car with a £3,000 deposit, three years at 6% and a £7,000 final payment says about £350 a month and about £22,500 in total, while this calculator shows £337.57 and £22,152.61 for the same inputs on a 6% APR. Always use the figures on your own finance quote.
Sources
Checked 20 October 2026:
This is not financial advice or a credit offer. Check the APR, total amount payable, final payment and any charges on your finance agreement before you sign.
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