How is my PCP mileage position calculated?

Your allowance accrues daily, not monthly, so a calculator compares the miles you've actually driven to the expected mileage at this point in the contract. It then extrapolates your current daily pace across the remaining days to project your total mileage at contract end, and estimates any excess charge if that projection goes over your allowance.

How accurate is a PCP finance calculator?

PCP calculator figures are estimates for planning purposes. Your lender must provide an exact settlement figure in writing within 7 working days of your request, valid for 28 days. Always get the written settlement figure from your lender before making any financial decision.

Does mileage excess mean I'm in negative equity on my PCP?

No, mileage position and equity are separate issues. You can be in positive equity but have a mileage excess, or be in negative equity with no mileage problem. Each affects your end-of-contract options independently.

What Your PCP Numbers Mean: Settlement Figure, Equity & VT Explained

Q: What happens if I go over my PCP mileage allowance?

You pay a per-mile excess charge at handback, typically between 6p and 15p per mile depending on the lender and vehicle, applied to whatever you've driven over your total contracted allowance.

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 gives you the short version of each, with a deeper dive into the one number most explainers skip: your mileage position.

The settlement figure

The amount you'd need to pay your lender today to own the car outright and close the finance agreement: roughly your remaining payments plus the balloon (GMFV), minus an interest rebate for paying early. For the full maths, the actuarial method behind the rebate, and how to get the exact figure from your lender, see how PCP settlement figures are calculated.

The voluntary termination threshold

The point at which you've paid 50% of the total amount payable (deposit, every monthly payment, and the balloon combined), after which Section 99 of the Consumer Credit Act 1974 lets you hand the car back with nothing more owed. For the full worked example showing exactly how that 50% figure is reached, see our Voluntary Termination calculator guide.

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 (We Buy Any Car for a guaranteed floor, Motorway or AutoTrader for a private-sale ceiling). For what each result actually means for your next move, see our full guide on how to check your PCP 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.

Try the free PCP settlement calculator →

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.

How EquityGo helps

Once you know what these numbers mean, EquityGo's PCP finance calculator tracks them for you automatically: your balance, equity, mileage vs. allowance, and settlement figure update as you log readings, instead of you recalculating by hand each time.

Get EquityGo on Google Play. Free to use, with a free 30-day Pro trial.