Free calculator

PCP and HP settlement calculator

See roughly what it costs to pay off a PCP or HP deal early, how much interest that saves, and whether you have paid enough to hand the car back instead. Use the figures on your agreement. Free, no sign-up.

Which type of finance?

PCP, with a balloon at the end HP, no balloon

Monthly payment

APR (%)

Length of the deal (months)

Monthly payments made so far

Deposit paid, part-exchange included

Balloon (PCP only) The optional final payment, sometimes called the GMFV.

Fees due at the end (optional) Such as an option-to-purchase fee.

Total amount payable (optional) Leave blank and we add it up from the figures above.

What the car is worth now (optional) Add a valuation to see whether you have equity or negative equity.

A worked PCP settlement example

A £24,000 car with a £3,000 deposit over 48 months at 9.9% APR, with an £11,000 balloon, costs £338 a month. Here it is after 24 payments, straight from this calculator.

Worked example: settling a £24,000 PCP after 24 payments
Still owed today at the APR	£16,470.65
Estimated settlement figure	£16,721.30
Left to pay if the deal runs to the end	£19,112
Interest saved by settling	£2,390.70
Total amount payable	£30,224
Voluntary termination point	£15,112
Paid so far, deposit included	£11,112
Payment that reaches halfway	Payment 36 of 48

On this PCP the £11,000 balloon makes up a large slice of the total, so halfway arrives at payment 36 of 48, not payment 24. Settling after 24 payments saves £2,390.70 of interest, but it means finding £16,721.30 at once.

Figures last checked against the official source on 23 September 2026. Check the source yourself.

How is a PCP settlement figure calculated?

Your lender takes what you still owe and rebates the interest you have not used yet. The minimum rebate is set by a formula in the Consumer Credit (Early Settlement) Regulations 2004, based on the agreement's APR.

Two rules add a little interest back. The figure is worked out to a settlement date 28 days after the lender gets your request, unless you name a later one. On deals longer than a year the lender can then push the date it uses for the rebate back by one more month.

That is why a real settlement figure sits a little above the balance this calculator shows as still owed today. On PCP the balloon is part of the figure, so you are paying off the whole car, not just the monthly payments.

Can a lender charge extra for settling early?

Only in limited cases. Under section 95A of the Consumer Credit Act 1974, a lender can claim compensation when you repay more than £8,000 early on a fixed-rate deal.

Section 95A caps the charge at 1% of the amount repaid when more than a year of the deal is left, and 0.5% when a year or less is left. It can never be more than the interest you would have paid over the rest of the term.

What is the 50% rule on PCP?

The 50% rule lets you end a PCP or HP deal and hand the car back once you have paid half the total amount payable. It comes from section 99 of the Consumer Credit Act 1974, and section 100 sets the half.

The total counts everything payable under the agreement, including the deposit, the balloon and any option-to-purchase fee. You give notice in writing, and the lender can charge for damage beyond fair wear and tear. Our guide to voluntary termination covers the hand-back itself.

Is it worth paying off a PCP early?

Settling early saves interest, but less the later you do it. The saving is largest in the first year or two, and near the end of the deal the extra settlement interest can wipe it out.

What the car is worth matters as much. With equity, settling and selling can leave you with cash for the next car. With negative equity, and once you pass halfway, voluntary termination is usually the cheaper way out, because you walk away owing nothing more.

How do you get an official settlement figure?

Ask your lender for a settlement statement, by phone or in writing. It has to show the amount due and how it was worked out, including any rebate or charge.

Pay that amount by the settlement date on the statement and the agreement ends. For the deal itself, the PCP calculator and HP calculator show what a new agreement would cost from the price, deposit and APR.

PCP settlement: common questions

How long is a car finance settlement figure valid?

A settlement figure is valid until the settlement date on the statement, which is 28 days after the lender gets your request unless you ask for a later date. Paying sooner does not lower it, because the interest rebate is worked out to that date.

Can a lender refuse to let me settle car finance early?

No. Section 94 of the Consumer Credit Act 1974 gives you the right to settle a regulated credit agreement at any time, and you can ask for the settlement figure by phone or in writing.

Can I pay off part of my car finance early?

Yes. You can make a partial early settlement at any time, and the lender has to rebate the interest on the part you repay. The rest of the agreement carries on, usually with smaller payments or a shorter term.

Can I hand back a PCP car with negative equity?

Yes, if you have paid half the total amount payable. Voluntary termination lets you return the car whatever it is worth, so a car worth less than the settlement figure is exactly when it helps most.

Does the 50% rule apply to a car lease?

No. Voluntary termination covers regulated hire purchase and conditional sale agreements, which is how PCP and HP deals are normally written. A personal lease is a hire agreement with its own early termination terms.