PCP Car Finance Calculator
Estimate your monthly payments and total costs for a Personal Contract Purchase. Factor in car price, deposit, term, APR, and the optional final payment.
Calculate Your Monthly Payments
Enter your vehicle details and finance terms below. The calculator will break down your deposit, monthly instalments, and total cost to show your estimated PCP agreement structure.
PCP Finance Solver
Project your monthly costs based on vehicle price and finance terms
PCP Finance Quick Facts
Essential insights into UK Personal Contract Purchase agreements
Understanding PCP Agreements
A PCP agreement is designed to keep monthly costs manageable by deferring a large portion of the car’s value to the end of the contract. Here is how the process works.
Pay an Initial Deposit
You start by paying an upfront deposit, which can be cash or a part-exchange value from your current vehicle. This immediately reduces the amount borrowed.
Make Fixed Monthly Payments
You pay a fixed monthly amount for the agreed term (usually 24 to 48 months). This covers the car’s depreciation during that period plus the finance interest.
Reach the End of the Term
Once the final monthly payment is made, the agreement concludes. The car’s value is assessed against the pre-agreed Guaranteed Minimum Future Value (GMFV).
Choose Your Final Option
You can either return the car (subject to condition and mileage), pay the GMFV to own it outright, or trade it in for a new PCP agreement using any built-up equity.
UK Finance Benchmarks
Estimated average terms and conditions for PCP car finance agreements in the UK, based on agreement length.
| Agreement Length | Typical Deposit Required | Typical APR Range | Estimated GMFV (% of Car Price) |
|---|---|---|---|
| Short Term (24 months) | 10% – 20% | 6.9% – 9.9% | 50% – 60% |
| Standard Term (36 months) | 10% – 20% | 7.9% – 10.9% | 40% – 50% |
| Long Term (48 months) | 10% – 20% | 8.9% – 11.9% | 30% – 40% |
| Extended Term (60 months) | 15% – 25% | 9.9% – 12.9% | 20% – 30% |
PCP Finance FAQ
Answers to the most frequently asked questions about Personal Contract Purchase agreements and car finance in the UK.
PCP is a type of car finance where you pay an initial deposit, followed by fixed monthly payments. These payments cover the car’s depreciation during the term plus interest, rather than the full value of the vehicle.
The Guaranteed Minimum Future Value (GMFV), or Optional Final Payment, is a pre-agreed balloon payment set at the start of the contract. It represents the lender’s guarantee of the car’s minimum value at the end of the term.
Yes. At the end of the agreement, you have three options: return the car to the lender, pay the Optional Final Payment (GMFV) to own the car outright, or use any positive equity as a deposit toward a new PCP agreement.
PCP agreements include an annual mileage limit. If you exceed this limit, you will be charged an excess mileage fee (typically measured in pence per mile) when you return the vehicle at the end of the term.