PCP Calculator – Personal Contract Purchase Balance
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PCP Calculator
Model your Personal Contract Purchase balance: monthly payments against the GMFV balloon, the outstanding-balance schedule, end-of-contract options, Voluntary Termination balance, mileage excess charges - plus how PCP stacks up against Hire Purchase.
Recent Calculations
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PCP terms (Voluntary Termination rules, GMFV mechanics) reflect UK consumer credit regulation regardless of display currency selected here.
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Enable the Car Depreciation Estimator below to auto-calculate GMFV.
Your finance provider sets this based on predicted mileage, term, and residual value data - enter the GMFV shown on your quote, or use a rough estimate of 30-50% of OTR price for exploration.
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Mileage Excess
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Export Details
Optional - blank fields are omitted from the export. Nothing is sent anywhere; all fields stay in your browser.
Monthly Payment
£0.00
Amount Financed
£0.00
Total Amount Payable
£0.00
GMFV
£0.00
Total Interest
£0.00
Agreed Mileage Allowance
0
End of Contract - Your Three Choices
1. Hand Back & Walk Away
Return the car to the finance company. No further payment (subject to fair wear-and-tear and any mileage excess charge below).
2. Pay GMFV & Keep
Pay the GMFV balloon (£0.00) to own the car outright.
3. Part-Exchange for Equity
If the car's market value exceeds the GMFV, use the surplus (equity) as a deposit on your next vehicle.
Equity Calculator
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Car Depreciation Estimator
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The Actual Market Value field above is auto-filled with the projected value at the end of your lease term. Edit it manually at any time to override the estimate - your entry will be preserved on future recalculations.
This is a generic depreciation estimate, not based on your specific vehicle's make/model - actual depreciation varies significantly by brand, condition, and market demand. For a more accurate figure, consult current used-car valuation guides or your dealer.
Voluntary Termination / Early Exit
Under the Consumer Credit Act 1974, you can voluntarily terminate a regulated PCP agreement once you have paid (or return the balance due to reach) 50% of the Total Amount Payable.
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50% VT Threshold
£0.00
VT Balance Due
£0.00
0% of the way to the 50% VT threshold
Mileage Excess
Estimated Excess Miles
0
Estimated Excess Charge
£0.00
Outstanding Balance Over Time (annual)
Year
Payments Made
Interest Portion
Principal Portion
Est. Outstanding Balance
Est. Car Value
Outstanding Balance Declining Over Term
Outstanding Balance vs Estimated Car Value
This calculator provides an illustrative estimate only and is not a credit quote or loan offer. Actual APR, monthly payments, and GMFV depend on an individual credit assessment by the finance provider. Early settlement and Voluntary Termination figures are estimates only - contact your finance provider for the exact binding figure. The VT balance is calculated per the statutory 50% rule under the Consumer Credit Act 1974, but you should confirm current terms with your provider before acting.
OTR price, deposit, part-exchange, APR, and term are shared automatically from the PCP Calculator tab - go there first to set them. This tab compares your PCP deal against a Hire Purchase (HP) agreement financing the full amount with no balloon.
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HP finances the FULL amount (OTR − Deposit − Part-Exchange, no GMFV subtracted) and amortizes fully to zero by the end of the term - so the car is owned outright with no balloon payment. Deposit and APR are reused from Tab 1.
Comparison
Metric
PCP
Hire Purchase
Monthly Payment & Total Cost: PCP vs HP
Optional - blank fields are omitted from the export.
This calculator provides an illustrative estimate only and is not a credit quote or loan offer. Actual APR and terms depend on an individual credit assessment by the finance provider. Consult your finance provider or a qualified financial adviser before making a decision.
A Personal Contract Purchase (PCP) agreement splits a car’s cost into low monthly payments plus a large optional balloon payment at the end, but that structure raises questions a normal loan calculator can’t answer: what’s your car actually worth against that balloon figure, and where do you stand if you need to exit early? This calculator handles the standard monthly payment along with GMFV equity, mileage excess charges, and the Voluntary Termination threshold.
How to use this PCP calculator
Enter the vehicle’s on-the-road (OTR) price, your deposit, APR, and contract term.
Enter or estimate the Guaranteed Minimum Future Value (GMFV), the balloon payment set by the finance company.
Set your annual mileage allowance and, if relevant, your expected actual mileage to check for excess charges.
Review your Monthly Payment, Amount Financed, Total Amount Payable, and Total Interest.
Use the Equity Calculator to compare the car’s actual market value against the GMFV at contract end.
Check the Voluntary Termination section to see your progress toward the 50% statutory threshold.
What this PCP calculator does
Unlike a standard car loan where you finance the full price and eventually own the car outright, a PCP agreement only requires you to finance the difference between the OTR price and the GMFV, which is why monthly payments are typically lower than an equivalent hire purchase or personal loan. At the end of the term, you choose one of three options, hand the car back, pay the GMFV to keep it, or part-exchange using any equity. This calculator estimates the monthly payment on that financed amount and helps you evaluate all three end-of-contract paths.
1. Hand back and walk away, return the car to the finance company with no further payment, provided it meets fair wear-and-tear standards and you haven’t exceeded your mileage allowance. 2. Pay the GMFV and keep it, pay the balloon payment to own the car outright. 3. Part-exchange for equity, if the car’s actual market value exceeds the GMFV, that surplus becomes equity you can put toward your next vehicle’s deposit.
Why the equity calculator matters
The GMFV is fixed at the start of the agreement, but the car’s real market value at contract end depends on actual depreciation, mileage, condition, and market demand. If your car is worth more than the GMFV, you have positive equity to roll into a new deal; if it’s worth less, handing the car back (option 1) protects you from that shortfall, since GMFV agreements are structured so the finance company, not you, absorbs the risk of the car being worth less than predicted (subject to fair wear-and-tear and mileage terms).
Voluntary Termination: your statutory right
Under the Consumer Credit Act 1974 (UK), if your PCP agreement is a regulated consumer credit agreement, you have the legal right to voluntarily terminate it once you’ve paid, or are willing to pay to reach, 50% of the Total Amount Payable (deposit plus all payments plus the GMFV). This calculator tracks your progress toward that threshold based on months paid so far, and shows the remaining balance due to reach it.
Frequently asked questions
Why is my PCP monthly payment lower than a normal car loan?
Because you’re only financing the difference between the car’s price and its Guaranteed Minimum Future Value (GMFV), not the full purchase price. The GMFV balloon remains unpaid unless you choose to pay it at the end of the contract to own the car.
What is Voluntary Termination and when can I use it?
It’s a statutory right under the Consumer Credit Act 1974 letting you end a regulated PCP agreement early once you’ve paid 50% of the Total Amount Payable. This calculator’s Voluntary Termination section shows how close you are to that threshold and your remaining balance due.
What happens if I go over my mileage allowance?
You’ll typically be charged an excess mileage fee (often around 3-30 pence per mile, commonly about 10p) for every mile over your agreed allowance when you hand the car back or trade it in. Entering your expected actual mileage lets this calculator estimate that charge in advance.
Should I hand the car back or pay the GMFV?
Compare the car’s actual market value against the GMFV using the Equity Calculator. If the market value exceeds the GMFV, paying it (or part-exchanging) captures that equity; if the market value is lower, handing the car back protects you from the shortfall.
