Estimate your monthly payment for Hire Purchase or PCP car finance.
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| Year | Principal repaid | Interest paid | Total paid |
|---|---|---|---|
| 1 | £3,352 | £1,235 | £4,587 |
| 2 | £7,014 | £2,159 | £9,173 |
| 3 | £11,016 | £2,744 | £13,760 |
| 4 | £15,389 | £2,958 | £18,347 |
Change term to see the effect on your result.
Clear context for the values above.
On-the-road price is included so you can interpret this estimate and make a better-informed comparison.
Deposit is included so you can interpret this estimate and make a better-informed comparison.
APR is included so you can interpret this estimate and make a better-informed comparison.
Dealer flat-rate quote for comparison is included so you can interpret this estimate and make a better-informed comparison.
PCP (Personal Contract Purchase) finance keeps monthly payments lower by deferring a large final 'balloon' or Guaranteed Future Value payment to the end of the agreement, while HP (Hire Purchase) spreads the full amount evenly with no balloon.
The financed amount (price minus deposit) is reduced by the present value of any balloon payment before the standard amortising-loan formula calculates the monthly payment. Set the balloon to £0 to model a standard Hire Purchase agreement instead.
Entered excess mileage is included. Arrangement, option-to-purchase and condition charges, part-exchange equity and early termination remain quote-specific.
Compare the total amount payable (not just the monthly figure) across PCP and HP quotes, and decide upfront whether you plan to own the car outright at the end, since that changes which option suits you.
UK-specific contextFigures use GBP and current published rates and thresholds.
Reviewed for clarityUpdated 3 August 2026.
ImportantFor planning and educational use — not tax, legal or financial advice.
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HP pays off the full car price over the term so you own it at the end; PCP defers a large chunk to an optional final balloon payment, keeping monthly payments lower but requiring a decision at the end (pay, return, or trade in).
Set it to £0 to model Hire Purchase, where the whole price is repaid across the term with no final lump sum.
Not necessarily — a lower PCP payment often reflects a large balloon payment rather than a genuinely cheaper total cost, so always compare the total amount payable.
No, APR includes most fees and represents the true annual cost of borrowing, so it's usually higher than a flat headline rate quoted by a dealer.
Rules and thresholds used by this calculator are labelled for 2026–27 or formula-labelled period. Review the primary guidance before making a filing, borrowing, benefit or investment decision.
Last source review: 3 August 2026. Calculator results are estimates and may exclude circumstances described in the methodology.
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