How overpaying works on car finance
The calculator keeps your normal monthly payment the same and adds your overpayments, so the loan is paid off sooner. It works month by month, charging interest at one twelfth of the annual rate on what you still owe.
For PCP and HP agreements, overpaying usually works by requesting a partial or full settlement from the lender rather than simply paying more each month. Ask your lender how they apply extra payments.
Worked example
On £15,000 at 8% with 48 months left, paying £50 a month extra saves £364.63 in interest and finishes 6 months sooner.
Settling early
You can settle a regulated car finance agreement early by paying the settlement figure, which usually reduces the interest.
Inputs for the car loan overpayment calculator
Amount you owe
The balance left on your car finance.
Interest rate (per year)
Your current interest rate.
Time left to repay
How many months are left on the loan.
Extra each month
The amount you'll pay on top of your normal payment each month. Enter 0 for none.
One-off lump sum now
A single overpayment made now. Enter 0 for none.
CALCULATOR QUESTIONS
Car loan overpayment calculator questions
Can I overpay my car finance?
Usually, though for HP and PCP it often works through a partial settlement. Ask your lender.
How much could I save?
Enter your details above. For example, £50 a month extra on £15,000 at 8% saves £364.63.
Can I settle my car finance early?
Yes. Ask the lender for a settlement figure.
Will my lender charge me for overpaying?
It depends on your agreement. Check for early repayment or settlement charges before you overpay.