Everyday Tool
Car Finance Monthly Payment Calculator
Use this online UK car finance calculator to estimate monthly payments for HP and PCP deals with deposit, APR, and optional final payment examples.
Car finance guide
HP vs PCP car finance
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Your Car Finance
Compare a straightforward `HP` style repayment with `PCP`, where part of the balance is left as an optional final payment.
Key terms
`HP` means Hire Purchase. You repay the financed balance over the term and usually own the car at the end once the agreement is completed.
`PCP` means Personal Contract Purchase. Monthly payments are lower because part of the balance is left as an optional final payment.
Your figures stay in the browser and are not stored by default.
Representative example only
These figures are for illustration and comparison. Dealer quotes can vary based on fees, mileage assumptions, condition rules, and lender-specific finance structure.
Balance and interest over time
See how the financed balance falls and how interest accumulates across the term.
Monthly finance schedule
Review the regular payment, interest, and remaining balance each month.
| Month | Payment | Interest | Principal | Optional final payment | Balance |
|---|---|---|---|---|---|
| 1 | £462.95 | £125.08 | £337.87 | — | £18,662.13 |
| 2 | £462.95 | £122.86 | £340.09 | — | £18,322.04 |
| 3 | £462.95 | £120.62 | £342.33 | — | £17,979.71 |
| 4 | £462.95 | £118.37 | £344.58 | — | £17,635.13 |
| 5 | £462.95 | £116.10 | £346.85 | — | £17,288.28 |
| 6 | £462.95 | £113.81 | £349.14 | — | £16,939.14 |
| 7 | £462.95 | £111.52 | £351.43 | — | £16,587.71 |
| 8 | £462.95 | £109.20 | £353.75 | — | £16,233.96 |
| 9 | £462.95 | £106.87 | £356.08 | — | £15,877.88 |
| 10 | £462.95 | £104.53 | £358.42 | — | £15,519.46 |
| 11 | £462.95 | £102.17 | £360.78 | — | £15,158.68 |
| 12 | £462.95 | £99.79 | £363.16 | — | £14,795.52 |
| 13 | £462.95 | £97.40 | £365.55 | — | £14,429.97 |
| 14 | £462.95 | £95.00 | £367.95 | — | £14,062.02 |
| 15 | £462.95 | £92.57 | £370.38 | — | £13,691.64 |
| 16 | £462.95 | £90.14 | £372.81 | — | £13,318.83 |
| 17 | £462.95 | £87.68 | £375.27 | — | £12,943.56 |
| 18 | £462.95 | £85.21 | £377.74 | — | £12,565.82 |
| 19 | £462.95 | £82.72 | £380.23 | — | £12,185.59 |
| 20 | £462.95 | £80.22 | £382.73 | — | £11,802.86 |
| 21 | £462.95 | £77.70 | £385.25 | — | £11,417.61 |
| 22 | £462.95 | £75.17 | £387.78 | — | £11,029.83 |
| 23 | £462.95 | £72.61 | £390.34 | — | £10,639.49 |
| 24 | £462.95 | £70.04 | £392.91 | — | £10,246.58 |
| 25 | £462.95 | £67.46 | £395.49 | — | £9,851.09 |
| 26 | £462.95 | £64.85 | £398.10 | — | £9,452.99 |
| 27 | £462.95 | £62.23 | £400.72 | — | £9,052.27 |
| 28 | £462.95 | £59.59 | £403.36 | — | £8,648.91 |
| 29 | £462.95 | £56.94 | £406.01 | — | £8,242.90 |
| 30 | £462.95 | £54.27 | £408.68 | — | £7,834.22 |
| 31 | £462.95 | £51.58 | £411.37 | — | £7,422.85 |
| 32 | £462.95 | £48.87 | £414.08 | — | £7,008.77 |
| 33 | £462.95 | £46.14 | £416.81 | — | £6,591.96 |
| 34 | £462.95 | £43.40 | £419.55 | — | £6,172.41 |
| 35 | £462.95 | £40.64 | £422.31 | — | £5,750.10 |
| 36 | £462.95 | £37.85 | £425.10 | — | £5,325.00 |
| 37 | £462.95 | £35.06 | £427.89 | — | £4,897.11 |
| 38 | £462.95 | £32.24 | £430.71 | — | £4,466.40 |
| 39 | £462.95 | £29.40 | £433.55 | — | £4,032.85 |
| 40 | £462.95 | £26.55 | £436.40 | — | £3,596.45 |
| 41 | £462.95 | £23.68 | £439.27 | — | £3,157.18 |
| 42 | £462.95 | £20.78 | £442.17 | — | £2,715.01 |
| 43 | £462.95 | £17.87 | £445.08 | — | £2,269.93 |
| 44 | £462.95 | £14.94 | £448.01 | — | £1,821.92 |
| 45 | £462.95 | £11.99 | £450.96 | — | £1,370.96 |
| 46 | £462.95 | £9.03 | £453.92 | — | £917.04 |
| 47 | £462.95 | £6.04 | £456.91 | — | £460.13 |
| 48 | £463.16 | £3.03 | £460.13 | — | £0.00 |
How to estimate your car finance monthly payment
Start with the vehicle price, your deposit, the APR, and the term of the agreement. The calculator then works out the amount being financed and estimates the repayment profile for a likely monthly payment.
In `HP`, the financed balance is repaid across the monthly instalments. In `PCP`, part of the balance is left as an optional final payment, which lowers the regular monthly amount.
The results show the likely monthly payment, the financed amount, the total payable, and a month-by-month schedule so you can see how the agreement behaves over time before you rely on any dealer or lender illustration.
PCP and HP explained
`HP` stands for Hire Purchase. It is usually the simpler structure: you pay a deposit, make monthly payments, and clear the financed balance by the end.
`PCP` stands for Personal Contract Purchase. Monthly payments are usually lower because some of the balance is deferred to the end as an optional final payment.
That means PCP can look cheaper month to month, but the end-of-agreement choices matter more because keeping the car generally involves paying the final lump sum.
What this online car finance calculator is useful for
An online car finance monthly payment calculator is useful when you want to move beyond the headline monthly figure and understand what a deal could really cost over the full term.
It helps you test how deposit size, APR, term length, and any optional final payment affect the financed amount, the likely monthly payment, and the total amount paid.
It is especially helpful when comparing the feel of `HP` against `PCP`, because the trade-off is usually lower monthly payments versus a larger decision point at the end of the agreement. If you are comparing vehicle borrowing with a more general unsecured option, our personal loan calculator can help you sense-check the difference in monthly cost and total borrowing.
Common monthly payment checks
- Compare a dealer PCP example with a simpler HP style scenario.
- See how a bigger deposit changes the amount financed.
- Estimate the effect of APR changes on the monthly payment.
- Sense-check whether an optional final payment feels manageable.
- Prepare clearer questions before speaking to a dealer or lender.
What affects a car finance monthly payment?
Vehicle price
A higher cash price usually means a larger amount to finance unless the deposit rises to offset it.
Deposit
A larger deposit reduces the financed balance, which can lower the monthly payment and the total amount of interest paid.
APR and term
Higher APR increases borrowing cost, while a longer term can reduce the monthly figure but increase the total payable.
Final payment
In PCP-style deals, leaving more to the end can make the monthly payment look lower, but it increases the importance of the final decision.
Tips for using the calculator more effectively
Start with the real cash upfront
Make sure the deposit reflects what you would genuinely want to put in at the start, rather than the most optimistic figure.
Compare monthly and total cost
A lower monthly figure can be appealing, but always look at the total payable and, for PCP, the optional final payment as well.
Use it as a comparison tool
This is best used to compare scenarios clearly before relying on any lender or dealer illustration with product-specific charges and conditions. If the car purchase sits alongside a wider move or change in household spending, the home move cost planner can help you look at the bigger picture.
Car finance monthly payment FAQ
A few quick answers to the questions people usually have when comparing HP and PCP payments online.
Is PCP usually cheaper per month than HP?
PCP often produces a lower monthly payment because some of the balance is deferred to the optional final payment. That can make it look cheaper month to month, even though the end-of-agreement choice matters much more.
How much difference does the deposit make?
Deposit size directly affects the financed amount. A larger deposit usually lowers the monthly payment and can also reduce the total interest paid over the term.
Will this match a dealer quote exactly?
It is best used as a planning and comparison tool. A dealer illustration may include lender-specific fees, mileage assumptions, or product conditions that change the final figures.
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