PCP Calculator
Estimate your PCP (Personal Contract Purchase) monthly payments. PCP keeps payments low by deferring part of the cost as a balloon payment (guaranteed future value) at the end of the agreement.
Frequently asked questions
What is PCP car finance?
PCP (Personal Contract Purchase) is the most popular form of car finance in the UK. You pay a deposit, make monthly payments over a fixed term, then choose to either pay the balloon payment (GFV) to keep the car, hand it back, or part-exchange it for a new deal.
What is the guaranteed future value (GFV)?
The GFV is the minimum value the dealer guarantees the car will be worth at the end of your agreement. It is set at the start and determines your monthly payments. If the car is worth more than the GFV, you have equity you can use as a deposit on your next car.
Is PCP cheaper than HP?
PCP has lower monthly payments because you are only financing the depreciation, not the full price. However, if you pay the balloon to keep the car, the total cost is usually higher than HP because interest accrues on a larger balance over the term.
What happens at the end of a PCP deal?
You have three options: hand the car back with nothing more to pay (assuming it is within agreed mileage and condition), pay the GFV to own the car outright, or part-exchange the car and use any equity as a deposit on a new agreement.
Can I end a PCP deal early?
Yes. You can voluntarily terminate under the Consumer Credit Act once you have paid 50% of the Total Amount Payable (deposit + all monthly payments + GFV). Alternatively, you can settle early by paying the outstanding balance minus an interest rebate.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.