Car finance
calculator.

01 / START WITH YOUR NUMBERS

How to use the car finance calculator

1. Enter the price and deposit

   The cash price less the deposit becomes the amount financed. A deposit is paid upfront and is included in the total paid to own the car.

2. Choose HP or PCP and add your APR

   HP mode repays the whole finance balance through regular payments. PCP mode leaves an optional final payment outstanding. Use an APR from your quote where possible; the default is an example.

3. Match the payment count and final amount

   Enter the actual number of regular monthly payments. In this model, the final payment is made alongside the last regular instalment. Some agreements have one fewer regular payment than the term in months, so check the schedule.

02 / THE NUMBERS IN PRACTICE

A worked example

The default HP example uses a £25,000 car, a £2,500 deposit and 48 regular monthly payments at 8.9% APR. In PCP mode, the default final payment is £10,000. That figure is an illustrative input, not a predicted vehicle value.

03 / UNDERSTAND YOUR RESULT

Why a final payment can lower the monthly figure

Leaving capital to the end means less of the balance is repaid through regular instalments. That usually reduces the monthly payment. It does not remove the remaining balance, and interest is still charged while that balance is outstanding.

The ownership total includes the deposit, every regular payment and the final payment. It is not the cost of returning a car under a PCP agreement. MoneyHelper explains PCP options, including the role of the final payment and the conditions attached to returning a car.

04 / UNDERSTAND YOUR RESULT

Use the lender's final payment, not a guessed resale price

This calculator does not forecast depreciation or set a guaranteed future value. A real PCP final amount depends on the agreement. Enter the quoted figure if you have one and read any mileage or condition requirements separately.

The term cards deliberately hold the final amount constant to isolate the effect of payment count. Real quotes may change both the term and final amount together. If comparing actual offers, enter each offer's complete details rather than changing the term alone.

PLAIN ENGLISH, PLEASE

Car finance glossary

The terms behind the inputs and results, explained without the guesswork.

HP

Hire purchase. This model repays the full finance balance through monthly instalments, with no balloon.

PCP

Personal contract purchase. This illustration defers part of the balance to an optional final payment.

Deposit

The upfront contribution towards the cash price. It reduces the amount financed.

APR

An annual measure of borrowing cost, converted here into an equivalent monthly interest rate.

Balloon payment

The final amount included to own the car in PCP mode. It is additional to the last regular payment here.

Amount financed

The vehicle price less the deposit.

Ownership total

Deposit plus regular instalments plus final payment. This model excludes extra charges.

BEHIND THE ESTIMATE

How the calculation works

We convert the APR to an effective monthly rate and discount the final payment back over the chosen number of regular payments. A level repayment formula then calculates the monthly amount needed to leave exactly that final balance.

With zero APR, the regular payment is (amount financed − final payment) ÷ payment count. HP uses a final payment of zero. Total interest equals the ownership total less the vehicle cash price. No documentation, option-to-purchase, excess-mileage or condition charges are included.