Car Finance Calculator
Work backwards from your monthly budget to see roughly how much car you could afford on Hire Purchase or PCP finance.
Finance Breakdown
Car Finance Calculator
This Car Finance Calculator works backwards from your monthly budget to estimate how much car you could afford on Hire Purchase (HP) or PCP (Personal Contract Purchase) finance. Tell it what you can comfortably pay each month, your deposit or trade-in value, an APR and a term, and it estimates the car price, the amount financed, and — for PCP — the balloon payment at the end of the agreement.
How to Use This Calculator
- Choose your finance type — Hire Purchase (HP) or PCP.
- Enter your desired monthly payment — what you can comfortably afford each month.
- Enter your deposit or trade-in value. This reduces the amount you need to finance.
- Enter an APR. Use a representative rate from a lender quote, or a typical current market rate if you’re just exploring.
- Choose a finance term — commonly 24, 36, 48 or 60 months.
- For PCP, enter a balloon (GMFV) percentage. This is the estimated value the car is expected to be worth at the end of the agreement, expressed as a percentage of the car’s price.
- Click Calculate Affordability to see your estimated car price and full finance breakdown.
Hire Purchase vs PCP: What’s the Difference?
| Hire Purchase (HP) | PCP | |
|---|---|---|
| Monthly payments | Cover the full car price | Cover the difference between price and GMFV |
| Typical monthly cost | Higher | Lower, for the same car price |
| End of agreement | You own the car outright | Pay the balloon to own it, hand it back, or trade in |
| Ownership during term | Building equity throughout | Little equity until near the end |
Because HP spreads the full car price across the term with no balloon, the same monthly budget typically finances a lower car price than PCP — but you own the car outright at the end with nothing further to pay.
What Is the Balloon / GMFV Payment?
On a PCP agreement, the Guaranteed Minimum Future Value (GMFV) is the future value agreed by the lender when the PCP contract is set up. It determines the balloon/final payment due at the end of the agreement, subject to the terms of the contract. Your monthly payments are lower because the final GMFV payment is deferred to the end of the agreement, so you are not financing the entire car price through the monthly instalments — which is why PCP payments are often lower than HP for the same car. At the end of the agreement you can pay the GMFV to keep the car, hand it back with nothing more to pay (subject to condition and mileage), or use any equity towards a new deal. The GMFV is set by the lender for the specific vehicle, term and agreed mileage — this calculator uses an illustrative percentage rather than a lender quote.
How This Differs From the Car Loan Calculator
This calculator works in the opposite direction to our Car Loan Calculator. If you already know the price of the car you want, the Car Loan Calculator compares Personal Loan, PCP and HP monthly payments for that price. If you don’t have a car in mind yet and want to know what you could afford on a given monthly budget, this Car Finance Calculator estimates the car price for you.
Frequently Asked Questions
How much car can I afford based on my monthly budget?
Enter your desired monthly payment, deposit or trade-in value, APR and term, and this calculator estimates the car price that budget could finance. For PCP, it also factors in a balloon (GMFV) payment at the end of the term. This is an estimate to help with planning, not a guaranteed finance offer.
What’s the difference between this and the Car Loan Calculator?
This calculator works backwards from a monthly budget to estimate an affordable car price. The Car Loan Calculator works forwards from a car price you already know, comparing Personal Loan, PCP and HP monthly payments for that specific price.
What is a balloon payment (GMFV) on PCP finance?
The Guaranteed Minimum Future Value (GMFV) is the future value agreed by the lender when the PCP contract is set up. It determines the balloon/final payment due at the end of the agreement, subject to the terms of the contract. Your monthly payments are lower because this final GMFV payment is deferred to the end of the agreement, so you are not financing the entire car price through the monthly instalments. The actual GMFV is set by the lender for each vehicle — this calculator uses an illustrative percentage you can adjust.
Does this calculator give me a real finance offer?
No. This is a planning estimate based on the figures you enter. Actual finance offers depend on your credit history, the specific vehicle, the lender’s own GMFV calculation, arrangement fees and other charges, which this calculator doesn’t include. Always compare a real quote from a lender or dealer before agreeing to finance.
Should I include my deposit or trade-in value?
Yes — include either your cash deposit, the value of a car you’re trading in, or both combined. This reduces the amount you need to finance, which increases the car price your monthly budget can afford.