Car cost calculator
Should you buy, finance or lease? And what will a company car really cost in tax? Work it out in a couple of minutes, with no dealer selling you something.
Buy, finance or lease
We calculate the payments and net cost for cash, HP, PCP and personal lease.
Company car BIK
Benefit-in-kind tax on electric, hybrid, petrol and diesel using current HMRC bands.
No sales pitch
Unlike dealers and brokers, we don't earn commission on what you choose.
Electric car BIK rates
Petrol and diesel cars are taxed on up to 37% of P11D value.
Common questions
Is it cheaper to buy or lease a car?
Buying with cash is usually cheapest overall because you avoid interest and own an asset you can resell, but it ties up your money. Leasing (PCH) and PCP have lower monthly payments because you only pay for the car's depreciation, not its full value - but you own nothing at the end and face mileage limits. Enter your numbers above to compare the net cost of each over the same term.
What's the difference between PCP and HP?
With Hire Purchase (HP) you spread the full price plus interest over the term and own the car once you've made the final payment. With Personal Contract Purchase (PCP) your monthly payments only cover the depreciation, so they're lower, and there's a large optional 'balloon' payment (the guaranteed minimum future value) if you want to keep the car at the end. Otherwise you hand it back.
How is company car tax (BIK) calculated?
Company car tax is your car's P11D value multiplied by its HMRC 'appropriate percentage' (set by CO2 emissions and, for hybrids, electric range), multiplied by your income tax rate (20%, 40% or 45%). Fully electric cars are taxed on just 3% of P11D in 2025/26, 4% in 2026/27 and 5% in 2027/28.
Why are electric company cars taxed so low?
The government uses low benefit-in-kind rates to encourage electric company cars. At 4% for 2026/27 (versus up to 37% for a high-emission petrol or diesel), an EV taken through a salary sacrifice scheme can cost far less than the equivalent on a personal lease, because you also save income tax and National Insurance on the sacrificed salary.
What is a P11D value?
The P11D value is the car's list price including VAT, delivery and any factory-fitted options, used to work out company car tax. It's usually slightly higher than the on-the-road price because it excludes the first registration fee and road tax.
Why use NoReply?
Dealers and brokers earn commission steering you towards one finance product. We don’t. This calculator just shows you the numbers so you can decide for yourself.
Already bought on finance?
This tool is for deciding how to pay. If you bought a car on PCP or HP between 2007 and 2024 and weren’t told about dealer commission, you may be owed money.
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