Lease vs PCP Calculator
Compare the total cost of leasing against PCP finance over the same term. Enter your figures below to see which option is cheaper.
Results
Total payments over the same term, with the PCP total reduced by the car's estimated resale value. Mileage charges, fees and insurance are not included.
Enter your details and press calculate to see results.
How the totals are compared
Both totals use the same deposit and term, so the comparison is like for like.
Total lease cost
Deposit + lease monthly payment × term (months).Total PCP cost
Deposit + PCP monthly payment × term + balloon payment − estimated resale value.Difference
The gap between the two totals. If they are equal, neither option is cheaper.
Worked example
A £3,000 deposit and a 36-month term for both. Lease at £350 a month. PCP at £300 a month with a £12,000 balloon payment and an estimated resale value of £14,000.
- Total Lease Cost
- £15,600
- Total PCP Cost (net of resale)
- £11,800
- PCP is cheaper by
- £3,800
Lease: £3,000 + £350 × 36 = £15,600. PCP: £3,000 + £300 × 36 + £12,000 − £14,000 = £11,800. Difference: £15,600 − £11,800 = £3,800.
Assumptions and limits
- The same deposit is applied to both options.
- The PCP total assumes you settle the balloon payment and the car is then worth the resale value you enter. If you hand the car back instead, the balloon and resale value both drop out.
- Excess mileage charges, damage charges, fees, interest changes and insurance are not included.
- Amounts can include pence; the term is a whole number of months.
Key Takeaways
- PCP total cost includes the balloon payment minus resale value.
- Don't forget to factor in excess mileage charges.
- In the worked example, £1,800 of PCP's £3,800 advantage comes from its lower monthly payments and £2,000 from the car being expected to be worth more than the balloon payment.