Loan Overpayment Calculator
See how much interest you’d save and how much sooner you’d be debt-free by overpaying car finance, hire purchase, PCP or a personal loan.
Your loan or car finance
By law you can overpay or settle a loan or car finance agreement at any time, and you get back the interest you haven’t used. Ask your lender to put overpayments towards the balance.
Worked example
£8,000 left on car finance at 24.9% APR, paying £250 a month, takes 50 more months and about £4,311 in interest.
- Overpay £50 a month: paid off 12 months sooner, saving about £1,130.
- Overpay £100 a month: paid off 19 months sooner, saving about £1,777.
- Pay a £1,000 lump sum now: paid off 9 months sooner, saving about £1,305.
At a high APR, every pound you overpay saves far more than it would earn in a savings account.
How it’s worked out
Each month interest is added at the monthly rate taken from your APR, then your payment and any overpayment are taken off. The calculator repeats this until the balance reaches zero and compares the interest with and without overpaying. Lenders work out early settlement using rules set by law, so your exact saving may differ slightly.
Thinking of a cheaper deal instead? Compare options with the car finance calculator.
Sources
Figures are checked against these official sources. Last reviewed 7 November 2026.
Common questions
Can I overpay my car finance?
Yes. Under the Consumer Credit Act you can repay part or all of a regulated loan, hire purchase or PCP agreement at any time. You get a rebate of the interest you haven’t used, so overpaying cuts what you pay overall. Tell your lender in writing or through their app how you want the overpayment used.
Is there a fee for paying off a loan early?
Only if you repay more than £8,000 within 12 months. The lender may then charge up to 1% of the amount repaid early, or 0.5% if less than a year is left. It can’t be more than the interest you would have paid.
Should I use the APR or the flat rate?
Use the APR. A flat rate, such as 14.45% on an agreement with a 26.72% APR, makes the cost look much lower than it really is.
Where do I find the amount left to pay?
Ask your lender for a settlement figure. It’s free, and it’s the exact amount needed to clear the agreement today. The balance shown in an app is often close to it.