The true cost

Car Finance Settlement Calculator: Pay Off Early

Work out your early settlement figure and the interest you'd save by paying off car finance early.

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

The True CostSETTLEMENT

Estimated settlement

£6,971

to clear it today

Interest you'd save

£709

vs running to the end

If you ran it to the end: £7,680
Lender may add up to ~1 month: £6,971–£7,026

This is an estimate. Your lender works out the exact figure under the Consumer Credit (Early Settlement) Regulations 2004 and may add up to about one month's interest — always confirm with them.

How we work this out

The settlement figure is the present value of the remaining payments (plus any remaining balloon) at your contract rate. We also show what you'd pay if you continued, so you can see the rebate.

Your lender sets the exact figure under the Consumer Credit (Early Settlement) Regulations 2004 and may add up to about one month's interest — always confirm with them.

Full method: how we calculate.

SourcesConsumer Credit Act 1974

A settlement figure is the amount you pay to clear your car finance early. This calculator estimates it from your monthly payment, APR and months left, and shows the interest you'd save versus running the deal to the end.

What is a settlement figure?

A settlement figure is the amount you'd pay today to clear your car finance in full and own the car (or close the deal). It's the outstanding balance with a statutory rebate of future interest.

Ask your lender for it in writing — it's usually valid for a set number of days.

Can you pay off car finance early?

Yes — you can settle car finance early at any time, and the Consumer Credit Act 1974 gives you a rebate on the interest you haven't yet been charged.

The lender may add up to about one month's interest, so the figure is a little more than the bare balance. Use the calculator above for an estimate, then confirm the exact figure with your lender.

How is the settlement figure worked out?

It's the value today of all your remaining payments at your contract rate, plus any remaining balloon — not simply the payments added up.

Worked example

On £320 a month with two years left at 9.9% APR, the settlement is around £6,970 — versus £7,680 if you kept paying to the end. That's roughly £710 of interest saved. See how overpaying does the same job gradually.

Is it worth settling early?

Settling early is worth it when the interest you save beats what the money would earn elsewhere — and it ends the debt.

If you can't settle in full, you may still be able to overpay or, on PCP and HP, use voluntary termination.

Other ways to end a deal: VT and selling

Beyond settling in full, you can hand the car back through voluntary termination or sell it to clear the finance.

Voluntary termination: hand a PCP or HP car back once you've paid 50% — see voluntary termination.
Sell or part-exchange: settle from the sale and keep any equity — see selling on finance.
Check for negative equity before you sell.

What if you're in negative equity?

If the car is worth less than the settlement figure, you're in negative equity and would need to cover the shortfall.

Work out how much with the negative equity calculator.

Frequently asked

What is a car finance settlement figure?

A settlement figure is the amount you pay to clear your car finance early. It's the outstanding balance with a statutory rebate of the future interest you haven't yet been charged, set by your lender.

Can you pay off car finance early?

Yes. You can settle car finance early at any time, and the Consumer Credit Act 1974 gives you a rebate on the unused interest. The lender may add up to about one month's interest, so always confirm the exact figure.

How is an early settlement figure calculated?

It's the present value today of your remaining payments at your contract rate, plus any remaining balloon. On £320 a month with two years left at 9.9% APR, that's about £6,970, saving roughly £710 in interest versus continuing.

Is it worth paying off car finance early?

Often, yes. Settling early saves the remaining interest and ends the debt. It's worth it when the interest saved beats what the money would earn elsewhere. You can also overpay gradually to the same effect.

Work out your next step

Independent calculators — pick the one that fits your situation.

Can you pay off car finance early?

Yes — you can settle car finance early at any time, and the Consumer Credit Act 1974 gives you a rebate on the interest you haven't yet been charged.

The lender may add up to about one month's interest, so the figure is a little more than the bare balance. Use the calculator above for an estimate, then confirm the exact figure with your lender.

How is the settlement figure worked out?

It's the value today of all your remaining payments at your contract rate, plus any remaining balloon — not simply the payments added up.

Worked example

Other ways to end a deal: VT and selling

Beyond settling in full, you can hand the car back through voluntary termination or sell it to clear the finance.

Voluntary termination: hand a PCP or HP car back once you've paid 50% — see voluntary termination.

Sell or part-exchange: settle from the sale and keep any equity — see selling on finance.

Check for negative equity before you sell.