PCH Calculator
Work out the total cost of a PCH (Personal Contract Hire) lease. PCH is a pure rental — you never own the car. Enter the monthly rental, initial payment (in months), and contract length to see the full picture.
Reviewed by Richard Ross · Last updated April 2026
How PCH Calculator works
How the PCH calculator works
A personal contract hire quote has three moving parts: the initial rental (an upfront payment expressed as a multiple of the monthly figure — commonly 3, 6, or 9 months), the monthly rental, and the contract length. This calculator adds the initial rental to the remaining monthly payments to give the total lease cost, then divides that total by the number of months to show the effective monthly cost — the figure that lets you compare two leases on a like-for-like basis regardless of how the upfront payment is structured. Because the first month is usually covered by the initial rental, the tool counts the initial payment plus (contract length minus one) further monthly rentals, matching how most leasing invoices are laid out. The figures are estimates; your actual quote depends on the vehicle, mileage allowance, and the leasing company’s current rates.
What a contract hire lease includes
Contract hire is the fleet-market name for the same product a private driver knows as personal car leasing, so a contract hire calculator and a leasing calculator do exactly the same job. The rental bundles the cost of using the car for a fixed term. Vehicle Excise Duty (road tax) is normally included for the life of the lease because the leasing company remains the registered keeper. Breakdown cover is sometimes included, and a maintenance package covering servicing, tyres, and MOTs can usually be added for an extra monthly amount. Insurance is not included — you arrange and pay for that yourself. Every lease sets an annual mileage allowance, and going over it triggers an excess-mileage charge (a pence-per-mile rate stated in your contract), so the mileage you choose at the quote stage directly affects the monthly figure.
Contract hire, lease purchase, and PCP compared
PCH (contract hire) is a pure rental — you hand the car back at the end and never own it. That keeps the monthly rental lower than a comparable purchase product, because you are only paying for the car’s depreciation over the term plus the leasing company’s charges, not the whole vehicle. Lease purchase is a different product: it works like hire purchase with a large final balloon, and you keep the car once that balloon is paid. PCP sits between the two — monthly payments cover depreciation, but a guaranteed future value gives you the option to buy at the end. If ownership matters to you, model the numbers with the PCP vs PCH calculator; if it does not, contract hire is usually the cheaper monthly route.
Ending a PCH lease early
Because contract hire is a hire (rental) agreement rather than a hire-purchase or conditional-sale credit agreement, the statutory voluntary termination right under sections 99 and 100 of the Consumer Credit Act 1974 — the 50%-paid hand-back that applies to HP and PCP — does not apply to a lease. Early exit is instead governed by the terms of your specific contract. Under most agreements the leasing company charges an early termination fee based on a proportion of the rentals left to run; a common figure is around 50% of the outstanding rentals, but this varies significantly by provider and by how far through the term you are. Some contracts allow a lease transfer to another driver, which can be cheaper than paying the settlement. Always ask the leasing company for a formal early termination quote in writing before deciding.
Worked example: a £350 lease over 36 months
Further reading
PCH differs from finance products on ownership, early-exit cost, and mileage risk — not just the monthly payment.
PCP vs PCH: which is right for you? →How to end a car lease early in the UK →Frequently asked questions
What is PCH?
PCH (Personal Contract Hire) is a long-term car lease for private individuals. You pay an initial rental (usually 3, 6, or 9 months upfront) followed by fixed monthly rentals. At the end, you return the car. You never own it.
What is included in a PCH deal?
PCH typically includes road tax and sometimes maintenance packages. You still need to arrange your own insurance. The lease sets an annual mileage limit, and you pay excess mileage charges if you go over.
Can I end a PCH deal early?
PCH agreements usually have early termination fees, which can be significant. Unlike PCP and HP, the Consumer Credit Act voluntary termination right does not apply to PCH because it is a rental, not a credit agreement.
Is PCH cheaper than PCP?
PCH often has lower monthly payments than PCP because there is no interest charge or balloon payment. However, you build no equity. If you always want to drive a new car and never want ownership hassle, PCH can be cost-effective.
What happens at the end of a PCH lease?
You return the car to the leasing company. It is inspected against BVRLA fair wear and tear guidelines. You may face charges for excess mileage or damage beyond fair wear and tear. There is no option to buy the car.
Is a contract hire calculator the same as a leasing calculator?
Yes. Contract hire is the name used in the business and fleet market for the product a private driver knows as personal car leasing or PCH. A contract hire calculator, a car leasing calculator, and a PCH calculator all work out the same thing: the initial rental plus the monthly rentals over a fixed term. The maths is identical whichever label the quote uses.
How do I work out the total cost of a car lease?
Add the initial rental (the upfront payment, usually a multiple of the monthly figure) to the remaining monthly rentals across the contract. For a 6-months-upfront deal at £350 over 36 months, that is (6 × £350) + (35 × £350) = £14,350. Dividing by the term gives the effective monthly cost, which is the fairest way to compare deals with different upfront structures. This is an estimate; your quote depends on mileage, vehicle, and the leasing company’s rates.
How much does it cost to end a car lease early?
Early termination of a PCH lease is governed by your contract, not by statute — the Consumer Credit Act 1974 voluntary termination right (sections 99–100) applies only to HP and PCP, not to leases. Under most agreements the leasing company charges a fee based on a proportion of the rentals left to run, commonly around 50% of the outstanding rentals, though this varies widely by provider and by how far through the term you are. Ask for a formal early termination quote in writing before committing.
What is lease purchase and how is it different from contract hire?
Lease purchase is a finance product that works like hire purchase with a large final balloon payment — you own the car once that balloon is paid. Contract hire (PCH) is a pure rental: you hand the car back at the end and never own it. Lease purchase suits drivers who want ownership with a lower monthly payment than standard HP; contract hire suits drivers who want the lowest monthly cost and no interest in owning the car.
Does the annual mileage limit affect my lease cost?
Yes, directly. The leasing company prices the rental partly on how much the car will depreciate, and higher mileage means more depreciation, so a higher mileage allowance raises the monthly rental. Choosing a limit that is too low to save money can backfire: exceeding it triggers an excess-mileage charge — a pence-per-mile rate set out in your contract — payable when you hand the car back.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.