15 June 2026 · 6 min read
PCP Finance Calculator: What Each Number Means and What to Do With It
When you enter your PCP details into a finance calculator, you get back a handful of figures — settlement estimate, voluntary termination threshold, projected mileage, months remaining. But what do they actually mean, and which ones should you act on?
This guide walks through each one.
The settlement figure
This is the most important number on any PCP calculator. It's the amount you'd need to pay your lender today to own the car outright and close the finance agreement.
How it's estimated:
Your settlement figure is roughly your remaining monthly payments plus your balloon payment (GMFV), minus an interest rebate. The rebate exists because you're paying off the finance early — the lender has to give back some of the interest they were going to charge over the remaining months.
Settlement ≈ (Remaining payments × monthly payment) + GMFV − interest rebate
The rebate is calculated using an actuarial method, not a simple proportion. In practice, it means the settlement figure drops faster in the early months of a contract and more slowly toward the end — which is why settling two years into a 48-month deal saves proportionally more than settling two months before the end.
What the calculator gives you vs. what your lender will give you:
A calculator gives you a useful estimate — accurate enough for planning, but not the exact figure you'd need to quote when settling. For the real number, contact your lender directly. Under the Consumer Credit Act 2006, they must provide a written settlement figure within 7 working days of your request, valid for 28 days. They can add up to 58 days of additional interest on top of the calculated balance.
The voluntary termination threshold
VT is a right under Section 99 of the Consumer Credit Act 1974 that lets you hand your car back early, with your liability capped at 50% of the total amount payable.
The total amount payable is everything you agreed to pay: deposit + all monthly payments + balloon payment. Half of that is your VT threshold.
The calculator shows you:
- How much you've paid so far (deposit + payments made to date)
- The threshold (50% of total amount payable)
- How far you are from it — in pounds and in months at your current monthly payment
Once you've crossed the threshold, VT is available immediately. You don't need to wait until the end of the contract, and you don't need your lender's permission.
One thing the calculator can't tell you:
Whether VT makes financial sense for you specifically. If you're in positive equity — your car is worth more than your settlement figure — it usually makes more sense to settle and sell or part-exchange than to VT. VT makes most sense when you're underwater on the finance and want a clean exit. Our guide on VT covers when to use it and what to expect.
The mileage position
Most PCP contracts have an annual mileage allowance baked in. Go over it at handback and you pay a per-mile excess charge — typically between 6p and 15p per mile depending on the lender and vehicle.
A calculator can show you three things from your allowance and what you've driven:
1. Whether you're currently over or under
Allowance accrues daily (not monthly), so even if you're midway through the year, you can check whether your driving pace is on track. The calculator compares your miles driven to the expected mileage at this point in the contract.
2. Your projected total at contract end
By extrapolating your current daily pace across the remaining days of the contract, it gives you a projected total mileage. If that projection exceeds your total allowance, you get an estimated excess charge.
3. Your daily budget
Your annual allowance divided by 365 — the miles per day you can drive without eating into your allowance. Useful if you're watching mileage closely.
Note that a mileage excess charge at handback is not the same as negative equity. You can be well within your mileage and still be underwater on the settlement figure, or vice versa.
The equity position
Equity = market value − settlement figure. The calculator gives you the settlement side; the market value you have to look up yourself.
Two useful benchmarks for market value:
- We Buy Any Car — this is the floor. They'll actually pay it, but it's usually the lowest offer.
- Motorway or AutoTrader private sale estimate — the ceiling if you sold it yourself, but you'd need to do the legwork.
Your real equity sits somewhere between those depending on how you plan to exit. If you're part-exchanging at a dealer, expect something closer to the WBAC figure.
What to do with each result:
| Equity position | What it means | |---|---| | Strongly positive | Consider settling and selling, or using as a deposit on your next car | | Slightly positive | Probably return at end of term and walk away with nothing — or PX if convenient | | Negative, VT reached | VT is a clean exit — no equity gap to cover | | Negative, VT not reached | Returning the car costs you the shortfall. Stay the course or overpay to build equity |
Running the numbers for your own contract
You need six things: purchase price, deposit, monthly payment, balloon payment, contract start date, and term length. Mileage fields are optional but unlock the excess charge projection.
No account needed. Results update as you type.
A note on accuracy
Settlement and equity figures from any calculator are estimates. Lenders vary in how they apply the interest rebate, and some contracts have clauses that affect the calculation. Always get a formal settlement quote from your lender before making a financial decision based on these numbers.