Early Repayment Charge Calculator
Some car finance agreements include an early repayment charge — a percentage of the outstanding balance or a flat fee. Enter your details to see the ERC amount and whether early repayment still works out cheaper than continuing to pay.
Frequently asked questions
What is an early repayment charge (ERC)?
An ERC is a fee charged by lenders when you pay off a loan before the end of the agreed term. For UK car finance regulated under the Consumer Credit Act, the maximum additional charge is typically 58 days of interest — but some agreements (especially older or unregulated ones) may have a percentage-based or flat-fee ERC written into the contract.
Is an ERC the same as the 58-day interest rule?
Not necessarily. The 58-day interest rule is the Consumer Credit Act default for regulated agreements from 2005 onwards. Some agreements — particularly those with a fixed early termination fee clause — use a percentage or flat-fee ERC instead. Check your contract or request a settlement figure from your lender.
Can I negotiate the ERC?
Your lender is legally required to provide a settlement figure, but there is usually no room to negotiate the ERC itself as it is set by contract. However, you can check whether your agreement is regulated under the CCA, which limits charges. If the charge seems unfair, complain to the Financial Ombudsman Service.
When is early repayment still worth it despite the ERC?
If the total you would pay by continuing (monthly payment times remaining months) exceeds the settlement total (balance plus ERC), then early repayment saves money. This is most often the case when your interest rate is high and you have many months remaining.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.