PCP Early Settlement Calculator
Estimate what you would owe if you ended your PCP finance today. Typical UK PCP APRs sit between 6% and 12%.
What is a PCP settlement figure?
A PCP settlement figure is the single lump sum your finance company would accept to end your Personal Contract Purchase agreement before the end of its term. It is made up of the monthly payments you still owe plus the balloon payment (the guaranteed minimum future value), minus a rebate for the interest you will no longer pay because you are finishing the agreement early.
You need one whenever you want out of a PCP before the contract finishes: selling the car privately, part-exchanging it for a different car, refinancing onto a cheaper deal, or simply ending the agreement. Lenders must give you a formal settlement figure on request, and it is normally valid for 28 days, so always get the official figure before you sign anything or hand over money.
How this estimate works
This calculator adds your remaining monthly payments to the balloon payment, then subtracts an estimated rebate for the interest and charges you avoid by settling early. The rebate is worked out with the rule-of-78 method, which gives a slightly smaller rebate in the early months of an agreement and a larger one towards the end — the same principle lenders apply under UK law, although they use a precise actuarial calculation.
One honest line worth knowing: voluntary termination is a UK legal right, not a favour from your lender. Once you have paid at least 50% of the total amount payable on the agreement, you can hand the car back and walk away from the remaining payments — you do not need the lender's permission. That said, if you want to keep or sell the car rather than return it, settling is the route to take, and this calculator helps you sanity-check the figure.
Related calculators: PCP monthly payment calculator and HP finance calculator.
Frequently asked questions
How is a PCP settlement figure calculated?
Your finance company adds up the payments you still owe plus the balloon payment, then subtracts a rebate for the interest you will no longer pay because you are settling early. Under UK rules the rebate must be worked out with a fair actuarial method, so it shrinks the longer you have already been paying. This calculator mirrors that logic with the widely used rule-of-78 approximation, which is why the result is an estimate rather than your lender's exact figure.
Will I get a rebate for settling my PCP early?
Yes. When you settle a regulated PCP agreement early in the UK, the Consumer Credit (Early Settlement) Regulations 2004 give you the right to a rebate of the interest and charges you would have paid had the agreement run to full term. The rebate is smaller if you settle near the end of the term, because most of the interest has already been charged by then. You can ask your lender for a formal settlement figure at any time, and it is usually valid for 28 days.
What is positive vs negative equity on PCP?
Positive equity means your car is worth more than the settlement figure, so you would keep the difference if you sold the car or handed it back and settled the finance. Negative equity means the settlement figure is higher than the car's value, leaving a shortfall you would still owe after a sale. PCP deals commonly show negative equity in the first half of the term because cars depreciate faster than the balance falls. Enter your car's valuation above to see which side of the line you are on.
Can I voluntarily terminate my PCP instead of settling?
Yes. Voluntary termination (VT) is a UK legal right under the Consumer Credit Act: once you have paid at least 50% of the total amount payable on the agreement, you can hand the car back and walk away from the remaining payments. You do not need the lender's permission, and you do not need to pay the balloon. Be aware that anything past fair wear and tear or excess mileage will be billed, and VT is recorded on your credit file.
Do I have to pay the balloon if I settle early?
Yes, the balloon payment (the guaranteed minimum future value) is part of what you owe under the agreement, so it is included in the settlement figure alongside the remaining monthly payments, less the early-settlement rebate. The only common way to avoid paying the balloon is to hand the car back at the end of the term, or to use voluntary termination if you have paid half of the total amount payable.
Estimate only — lenders calculate the exact settlement figure using the actuarial method under the Consumer Credit (Early Settlement) Regulations 2004, so your finance company's figure may differ slightly. Always confirm the exact figure with your lender before acting.