Calculator
PCP calculator
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Last updated: .
Personal Contract Purchase (PCP) splits the cost of a car into a deposit, monthly payments and an optional final payment — the guaranteed future value (GFV), sometimes called the balloon. Enter the figures from a quote to see how they fit together.
Illustrative only, not financial advice. Results depend entirely on the figures you enter. Figures filled in below are labelled “Example figure” — they aren’t live rates, offers or recommendations.
Estimate a PCP deal
Your illustrative results
- Monthly payment
- –
- Final payment (GFV)
- –
- Total payable
- –
- Total including deposit
- –
- Total interest
- –
- Depreciation
- –
- Excess mileage cost
- –
What you’d pay each month for the term.
Paid at the end only if you choose to keep the car.
Monthly payments plus the GFV, excluding your deposit.
Everything paid if you keep the car: deposit, monthly payments and GFV.
The cost of borrowing: total payable minus the amount borrowed.
Car price minus the GFV — the value the car is expected to lose.
Estimated charge if you drive more than your allowance (only if you fill in the mileage fields).
How this PCP calculator works
With PCP you don’t repay the whole car during the term. The GFV is set aside as a final payment, so the monthly payments cover the rest of the amount borrowed plus interest on the full balance. At the end you can usually pay the GFV and keep the car, hand it back, or use any equity towards another agreement — subject to the agreement’s terms and the car’s condition.
The GFV must be less than the amount you borrow. If you leave it blank, the calculator will ask for it, because a PCP estimate isn’t meaningful without one.
Things to check on a real quote
- The APR and the total amount payable shown on the lender’s pre-contract information.
- The annual mileage allowance and the excess mileage charge.
- Fees, such as an option-to-purchase fee, and condition or wear-and-tear charges when the car is returned.
- How PCP compares with hire purchase for your situation — see our HP calculator.
The formulas we use
Amount borrowed: L = P − D (car price minus deposit). Monthly rate from APR: r = (1 + APR)^(1/12) − 1.
Monthly payment: M = (L − GFV ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n) — the standard PCP method, where the GFV is paid at the end so only part of the balance is repaid monthly. If the APR is 0%: M = (L − GFV) ÷ n.
Total payable: (M × n) + GFV. Total including deposit: (M × n) + GFV + D.
Total interest: (M × n) + GFV − L. Depreciation: P − GFV.
Excess mileage (optional): max(0, expected − allowance) × years × pence per mile.
FAQ
What is the GFV on a PCP?
The guaranteed future value is the amount the lender expects the car to be worth at the end. It’s the optional final payment if you want to keep the car.
Why does the calculator need the GFV?
Because PCP monthly payments depend on it. Without a GFV the result would just be a hire purchase estimate — try our HP calculator for that.
Why might my quote be different?
Lenders round figures, may add fees, and set the GFV and mileage terms themselves. Always use the figures on the lender’s quote.
Does this calculator store my figures?
No. Everything is worked out in your browser and nothing is stored or sent anywhere.
Get our weekly email
The Friday Finance Lowdown — five minutes of the money stuff worth knowing.
Free to join. See our privacy policy for how we handle your email address.