PCP Calculator UK 2026
Calculate your Personal Contract Purchase monthly payment, balloon (GMFV), total cost, and see how PCP compares to HP on the same car.
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Auto: £11,250 (45% of list)
Your Options at the End of PCP
Pay the GMFV of £11,250. If the car is worth more, you have positive equity.
Hand it back with nothing more to pay (subject to condition and mileage limits).
If market value > GMFV, use the difference as a deposit on your next PCP.
Mileage Excess Charges
| Miles Over Limit | At 5p/mile | At 10p/mile | At 15p/mile |
|---|---|---|---|
| 1,000 miles | £50 | £100 | £150 |
| 2,500 miles | £125 | £250 | £375 |
| 5,000 miles | £250 | £500 | £750 |
| 10,000 miles | £500 | £1,000 | £1,500 |
| 20,000 miles | £1,000 | £2,000 | £3,000 |
UK PCP Average Rates by Credit Band (2026)
| Credit Profile | Typical APR | Monthly on £20k financed, 48mo |
|---|---|---|
| Excellent | 4% – 7% | £357 – £376 |
| Good | 7% – 12% | £376 – £421 |
| Fair | 12% – 20% | £421 – £491 |
| Poor | 20% – 35% | £491 – £611 |
Note: PCP monthly payment on depreciation portion only (GMFV 40% of list, 48 months). Actual rates set by lender at time of application.
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How PCP Car Finance Works — Step by Step
PCP (Personal Contract Purchase) is the UK's most popular car finance. You pay for the car's depreciation, not its full value — which keeps monthly payments low.
- 1The lender sets a GMFV (Guaranteed Minimum Future Value). This is the predicted value of the car at the end of the agreement — typically 35–50% of list price depending on make, model, and annual mileage. Lower mileage = higher GMFV.
- 2Calculate the amount being financed. Financed amount = (Car price − Deposit) − present value of GMFV. You only finance the depreciation gap, not the balloon payment.
- 3Apply the amortisation formula. Monthly = Financed × r(1+r)ⁿ / [(1+r)ⁿ − 1], where r = APR÷1200 and n = term in months.
- 4At the end of the agreement, you have 3 choices: (A) Hand back the car — nothing more to pay if within mileage. (B) Pay the balloon (GMFV) and own the car. (C) Use any equity to fund your next PCP deal.
- 5Watch out for excess mileage charges. Typically 5–10p per mile over the agreed annual limit. On a 3-year deal, 5,000 extra miles could cost £250–£500.
PCP Monthly Payment Examples — UK 2026
Based on 9.9% APR, 48-month term, 10% deposit, 10,000 miles/year (GMFV ≈ 40% of list price):
| Car Price | Deposit (10%) | GMFV (40%) | Monthly (PCP) | Monthly (HP equiv.) |
|---|---|---|---|---|
| £15,000 | £1,500 | £6,000 | £189/mo | £289/mo |
| £20,000 | £2,000 | £8,000 | £252/mo | £386/mo |
| £25,000 | £2,500 | £10,000 | £315/mo | £482/mo |
| £30,000 | £3,000 | £12,000 | £378/mo | £579/mo |
| £40,000 | £4,000 | £16,000 | £503/mo | £771/mo |
PCP saves £97–£268/month vs HP on equivalent terms — but you don't own the car at the end unless you pay the balloon.
PCP vs HP: Which Costs More Overall?
| Scenario | PCP (hand back) | PCP (buy at end) | HP |
|---|---|---|---|
| £25,000 car example | £17,620 total paid | £27,620 total paid | £25,136 total paid |
| You own the car? | No | Yes | Yes |
| Best for | Regular upgraders | Keeping the car long-term | Ownership, simplicity |
Frequently Asked Questions
Indicative estimates only. GMFV figures are representative averages — actual values are set by lenders and vary by car make, model, colour, and optional extras. APR and monthly payments are subject to credit approval. Car finance is regulated by the Financial Conduct Authority (FCA). Verify any lender at register.fca.org.uk. Last updated: March 2026.