Illustrative car finance
PCP and HP calculator
Compare Personal Contract Purchase and Hire Purchase in GBP, USD or EUR using the vehicle price, deposit, APR and agreement term.
Enter the illustrative finance terms
Switch between Personal Contract Purchase (PCP) and Hire Purchase (HP) to compare the payment structure.
Important: This calculator provides an illustrative mathematical estimate only. It is not financial advice, a credit offer, a quotation or a recommendation. Actual payments depend on the lender’s calculation method, fees, credit assessment and agreement terms. Finance is subject to status.
How the PCP and HP estimates work
Both estimates use a standard reducing-balance repayment calculation from the figures you enter. HP spreads the financed amount across the agreement. PCP defers the optional final payment, which usually reduces the monthly instalment but leaves more to pay if you keep the car.
PCP considerations
Returning the car rather than making the optional final payment can be subject to mileage, condition and other agreement rules. Equity is not guaranteed. Check the exact deposit, annual mileage, final payment, fees and return conditions on the lender’s written quotation.
Important financial information
This free tool does not assess affordability or eligibility and does not arrange finance. Results are illustrative, may not match a lender’s quotation and should not be the sole basis for a financial decision. Consider the total amount payable as well as the monthly figure.
Frequently asked questions
Is this calculator a finance quote?
No. It is an illustrative mathematical estimate for general comparison only. It is not financial advice, a credit offer, a quotation or a recommendation, and finance is subject to status and lender terms.
What is the optional final payment on PCP?
It is the larger payment normally required at the end if you want to keep the vehicle. It is sometimes called a balloon payment or guaranteed future value.
Why might a lender’s monthly payment differ?
A lender may calculate interest differently or include fees, timing adjustments, deposits, part-exchange values and other agreement terms that are not represented by this simplified estimate.
Do I own the car at the end of HP?
HP normally leads to ownership after every required payment and any option-to-purchase fee, but you must check the specific agreement because lender terms vary.
Does changing currency convert the finance figures?
No. Choose GBP, USD or EUR and enter all prices, deposits, fees and final payments in that same currency. The calculator does not use an exchange rate.