The true cost

Car Finance Overpayment Calculator

See how overpaying your car finance cuts the interest and shortens the term.

IndependentWe sell no financeNo commissionMaths based on FCA rules & the Consumer Credit Act 1974

The True CostOVERPAYMENT

Interest saved

£429

Time saved

8 months

Months without overpaying: 4 years 1 month
Months with overpaying: 3 years 5 months
Interest without overpaying: £2,479
Interest with overpaying: £2,050

Check your agreement first — most let you overpay, and the Consumer Credit Act gives you a rebate of interest on what you clear early.

How we work this out

We re-run the repayment schedule with your extra monthly amount, then compare the total interest and number of months with and without it.

Check your agreement first — most allow overpayments, with a statutory interest rebate under the Consumer Credit Act 1974.

Full method: how we calculate.

SourcesConsumer Credit Act 1974

Overpaying car finance means putting extra towards the balance each month, which cuts the interest and clears the deal sooner. This calculator shows the interest and the months you'd save.

Can you overpay car finance?

Yes — most car finance agreements let you overpay, either monthly or as a lump sum. Check your agreement for any limits, and tell the lender you want the extra to reduce the balance.

Under the Consumer Credit Act 1974 you're entitled to a rebate of interest on anything you clear early.

How overpaying saves you money

Every extra pound goes straight at the balance, so you're charged interest on less for the rest of the term. That cuts both the interest and the length of the deal.

Worked example

On a £12,000 balance at 9.9% APR paying £300 a month, adding just £50 a month clears the deal months early and saves a chunk of interest. The bigger the overpayment, the bigger the saving — try it above, then compare with settling in full.

Are there overpayment fees?

Usually not for small monthly overpayments, but clearing a large amount can trigger an early-settlement adjustment.

The Consumer Credit Act caps how much interest a lender can keep when you pay early. If you're clearing most of the balance, it may be simpler to ask for a full settlement figure.

Overpay or settle in full?

Overpay when you have spare cash each month; settle in full when you can clear the whole balance and want to end the deal.

Both save interest under the same CCA rules. Work out the one-off cost with the settlement calculator.

Frequently asked

Can you overpay car finance?

Yes. Most car finance agreements let you overpay monthly or as a lump sum — check yours for any limits. Under the Consumer Credit Act 1974 you get a rebate of interest on anything you clear early.

How does overpaying car finance save you money?

Each extra payment reduces the balance, so you're charged interest on less for the rest of the term. That cuts the total interest and clears the agreement sooner — often by several months.

Are there fees for overpaying car finance?

Small monthly overpayments usually have no fee. Clearing a large amount can trigger an early-settlement adjustment, but the Consumer Credit Act limits how much interest the lender can keep.

Work out your next step

Independent calculators — pick the one that fits your situation.

How overpaying saves you money

Every extra pound goes straight at the balance, so you're charged interest on less for the rest of the term. That cuts both the interest and the length of the deal.

Worked example