How to calculate PCP excess mileage charges
If you're heading toward the end of a PCP contract and worried you've driven too far, the first thing you need is a number. How much are you actually looking at paying?
The good news: the calculation itself is simple. The tricky part is tracking down the right inputs — specifically your charge rate, which isn't always easy to find.
The PCP mileage calculator works this out for you automatically — just enter your contract details and current odometer reading.
The basic formula
Excess mileage charges are calculated like this:
(Total miles driven − Total mileage allowance) × pence per mile charge = excess charge
That's it. There's no penalty multiplier, no tiered rate in most cases — just a flat per-mile charge applied to however many miles you're over.
A worked example
Contract details:
Length: 36 months
Annual mileage allowance: 10,000 miles
Total allowance: 30,000 miles
Excess mileage charge rate: 10p per mile
At handover:
Odometer at start: 5 miles (new car)
Odometer at handover: 33,847 miles
Total miles driven: 33,842
Miles over allowance: 33,842 − 30,000 = 3,842 miles
Excess charge: 3,842 × £0.10 = £384.20
Change the rate to 15p per mile and that same overage would cost £576.30. At 20p it's £768.40. The rate in your agreement makes a significant difference, so it's worth finding it early.
How to find your charge rate
Your excess mileage charge rate is written into your PCP agreement — look for a section on "excess mileage", "additional mileage charges", or similar. It'll be expressed in pence per mile, sometimes including VAT.
If you can't find your paperwork, the quickest route is to call your finance company directly. They can confirm your rate in a couple of minutes. Common finance companies and their contact routes:
- Volkswagen Financial Services (VWFS) — covers VW, Audi, SEAT, Skoda, Porsche
- BMW Financial Services — covers BMW and MINI
- Ford Credit / Ford Options
- Toyota Financial Services
- Black Horse — used by many independent dealers
- Santander Consumer Finance
If you don't know who your finance is with, it'll be on your original agreement or your monthly payment statements.
Typical charge rates by car type
| Car segment | Typical excess charge | Example: 5,000 miles over |
|---|---|---|
| Small/city cars | 5–8p per mile | £250–£400 |
| Family hatchbacks & saloons | 8–12p per mile | £400–£600 |
| SUVs & crossovers | 10–15p per mile | £500–£750 |
| Premium & executive cars | 15–25p per mile | £750–£1,250 |
| Luxury & performance cars | 20–30p+ per mile | £1,000–£1,500+ |
These are rough guides only — rates vary between manufacturers and even between deals on the same model. Always use your actual contracted rate for any real calculations.
Does VAT affect the charge?
Sometimes. Some agreements quote the excess mileage rate excluding VAT, meaning the figure you actually pay will be 20% higher. Check whether your agreement says "plus VAT" or "including VAT" next to the charge rate — it's easy to miss and makes a real difference to the final bill.
What if I'm planning to part-exchange rather than hand back?
If you're part-exchanging at a dealership, there's no direct excess mileage invoice — but the extra miles are reflected in the dealer's valuation. A car with 33,000 miles on it will be worth less than the same car with 28,000 miles, and that gap will come out of your part-exchange offer.
Whether that works out better or worse than the excess charge depends on the specific numbers. In some cases part-exchanging with high mileage is actually cheaper — it's worth running both scenarios before you decide.
How to estimate your final overage before the contract ends
If you're not at the end yet, you can project forward using your current rate of driving. Take your total miles so far, divide by months elapsed, and multiply by total contract months. That gives you a projected end mileage — subtract your allowance and apply your charge rate.
Again, the calculator does this for you and shows the projection on a chart, which makes it much easier to see whether small changes to your driving would bring you back in line.
Enter your contract details at pcpmileage.co.uk — you'll get your projected overage and an estimated charge in under a minute.
Frequently asked questions
Is there a cap on excess mileage charges?
Not typically — the charge applies to every mile over your allowance with no upper limit. However, some agreements do include a cap, so it's worth checking your paperwork. If you're significantly over, it may also be worth comparing the excess charge against the cost of a voluntary termination.
Are excess mileage charges negotiable?
Sometimes. Finance companies have some discretion, particularly if you're a returning customer or if the overage is minor. It doesn't hurt to ask — but don't count on it and plan your finances assuming the full charge applies.
When do I actually pay the excess charge?
At the end of your contract, after you've handed the car back. The finance company will inspect the car and then send you an invoice covering any excess mileage and any damage beyond fair wear and tear. You'll usually have a short window to pay.
Can I pay excess mileage charges in instalments?
Some finance companies will allow this if you ask — it's not standard but worth enquiring about if the bill is large. Call them before the end of your contract rather than after, when you'll have more negotiating leverage.
This article is for informational purposes only and doesn't constitute financial advice. Always check your own agreement or speak to your finance provider for figures specific to your contract.