Car Finance True Cost Calculator
Compare PCP, HP, buying for cash and keeping your current car using total payments, running costs and the asset left at the end.
Your numbers stay in this browser tab. Nothing you enter is saved or submitted.
Your numbers
Illustrative figures to start. Change them to explore your decision.
APR, fees, mileage and return condition
Annual running costs · new car
Keeping your current car
Assumes the current car is owned outright. Use the same number of months for each option.
Your perspective
PCP effective monthly cost £645.04 versus quoted payment £299.00.
The payment is only the beginning
Over 48 months, the PCP option uses £30,962.00 in cash and leaves an estimated £0.00 car asset. Its net use cost is £30,962.00. These are different questions from whether £299.00 fits next month’s budget.
| Measure | PCP · return | HP · own | Cash · own | Keep current car |
|---|---|---|---|---|
| Vehicle payments | £18,362.00 | £28,010.00 | £25,000.00 | £0.00 |
| Finance cost to own | £5,362.00 | £3,010.00 | £0.00 | £0.00 |
| Running costs | £11,800.00 | £11,800.00 | £11,800.00 | £14,000.00 |
| Return charges | £800.00 | £0.00 | £0.00 | £0.00 |
| Total cash out | £30,962.00 | £39,810.00 | £36,800.00 | £14,000.00 |
| Current car opportunity cost | £0.00 | £0.00 | £0.00 | £6,000.00 |
| Car asset at end | £0.00 | £12,000.00 | £12,000.00 | £3,000.00 |
| Net use / ownership cost | £30,962.00 | £27,810.00 | £24,800.00 | £17,000.00 |
| Effective monthly cost | £645.04 | £579.38 | £516.67 | £354.17 |
PCP finance cost is the amount above the cash price if you complete the purchase, not an extra charge added to the return option. Keeping the current car includes the sale value you forgo today; it is not a new cash payment.
Excess-mileage estimate: 8,000 miles × 10p = £800.00. Included in PCP return charges.
The entered APR and payments differ from the simplified finance cross-check. Your quote may include different timing or contributions. Totals above use the entered payments; check the lender’s payment schedule.
APR cross-check and reconciliation
Equal month-end payment estimate before separate fees: PCP £320.78; HP £509.01. The estimate converts APR to a monthly effective rate. It is not a reconstruction of the lender’s regulated APR calculation.
PCP amount paid to own: deposit + all monthly payments + final payment + fees = £30,362.00. No interest is added a second time.
A worked example
A £4,000 deposit plus 48 payments of £299 is £18,352 before fees or running costs. Add a £12,000 final payment and the amount paid to own is £30,352. If the cash price was £25,000, that is £5,352 above it. Returning the car avoids the final payment but leaves no owned car.
What this calculation assumes
- All options use the same comparison period. The quoted monthly payments determine the totals. APR supplies a separate simplified cross-check, not extra interest added on top of those payments. It assumes equal month-end payments and an effective monthly rate derived from APR; real quote timing and financed fees may differ.
- The term is the actual number of monthly payments. Put any purchase-only fee into the final payment; the separate fees input covers fees paid in either PCP outcome. Enter the net cash price and deposit after any dealer contribution has been accounted for.
- PCP return includes excess mileage and your condition-charge estimate, but no balloon or resale value. PCP purchase and HP include ownership and subtract your estimated resale value; contractual mileage return charges are not applied when purchasing. Mileage can still affect resale value.
- Keeping the current car assumes it is owned outright. Its current sale value is an opportunity cost, and its later resale value is deducted. Running costs are annual estimates spread over the comparison period. No investment return on cash, inflation, depreciation forecast, negative-equity refinance or guarantees of resale value.
Sources and rules
Rules and guidance checked 5 October 2026. Rates entered in mortgage, debt and car comparisons are your assumptions, not live offers.
Put the numbers in perspective
Illustrative information, not personal financial, tax or debt advice. Check your circumstances and contractual terms before acting. Read our disclaimer.