Car payment calculator
Estimate your monthly car finance payments for Hire Purchase (HP) or PCP (with a balloon payment). Enter your figures and the totals update instantly.
£— per month
- Amount borrowed
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- Total of monthly payments
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- Final (balloon) payment
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- Total payable
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- Total interest (cost of credit)
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These figures are estimates for illustration only — not a quote, a credit offer, or financial advice. Actual rates and payments depend on the lender and your circumstances. APR is applied as a monthly compounded rate and fees are not included.
HP vs PCP — which is right for you?
Hire Purchase suits you if you want to own the car outright with no lump sum at the end — monthly payments are higher but there's nothing left to pay once the term finishes. PCP keeps monthly payments lower by deferring a balloon payment, giving you flexibility at the end to buy, return or part-exchange — ideal if you like to change car every few years.
How to lower your monthly payment
- Bigger deposit — a larger deposit (or part-exchange) reduces the amount borrowed.
- Longer term — spreads the cost, but you'll pay more interest overall.
- Lower APR — shop around; your credit profile and the car affect the rate.
- PCP balloon — deferring more to the balloon lowers monthlies, but leaves a bigger final payment.
Calculator FAQs
What's the difference between Hire Purchase (HP) and PCP?
With HP you borrow the car's price minus your deposit and repay it in full over the term, owning the car at the end. With PCP a large part of the value (the balloon, or optional final payment) is deferred to the end, so monthly payments are lower — but to own the car you pay the balloon; alternatively you hand it back or part-exchange.
What is a balloon payment?
The balloon (also called the optional final payment or Guaranteed Minimum Future Value) is a lump sum deferred to the end of a PCP agreement. Pay it and you keep the car; otherwise you can return it or part-exchange for a new deal.
How are the monthly payments calculated?
The calculator uses the standard amortising formula on the amount borrowed (car price minus deposit) at your APR. For PCP it also charges interest on the deferred balloon, which is why the monthly figure is lower but a final payment remains.
Is this a finance quote?
No. It's an illustration to help you plan and compare. Your actual rate and payments depend on the lender, the car and your circumstances — always check the dealer or lender's own figures.
What APR should I enter?
Use the representative APR from a dealer or lender quote. UK car finance commonly ranges from around 6% to 15% APR depending on your credit profile and the vehicle.
Can I use my car as the deposit?
Yes — a part-exchange usually counts towards your deposit. Get a valuation first so you know what it's worth; see our valuation packs on the products page.
Know your part-exchange value first — see our valuation packs →