HP Overpayment Calculator
See how much interest and time you can save by making monthly overpayments on your Hire Purchase agreement. Even small overpayments can make a significant difference over the life of the loan.
Frequently asked questions
Can I overpay my HP agreement?
Yes. Under the Consumer Credit Act 1974, you have the right to make partial early repayments on any regulated credit agreement. Your lender must accept overpayments, though some may require you to notify them or set a minimum overpayment amount.
Is it better to overpay monthly or make a lump sum?
Both approaches save interest, but regular monthly overpayments are usually easier to budget for and start saving interest immediately. A lump sum (such as a bonus) makes a bigger single impact. The best approach is whatever you can sustain consistently.
Are there penalties for overpaying car finance?
For regulated consumer credit agreements in the UK, the maximum early repayment charge is 1% of the amount repaid early (or 0.5% if the remaining term is under a year). Most HP lenders do not charge any fee for partial overpayments, only for full early settlement.
Will overpaying affect my credit score?
Overpaying does not negatively affect your credit score. If anything, paying off debt faster is positive. The agreement will show as settled sooner on your credit report. However, your credit file will not specifically record that you overpaid.
How much overpayment makes a real difference?
Even a small overpayment of £50-100 per month can save hundreds of pounds in interest on a typical HP agreement. The higher your APR and the longer your term, the more impact overpayments have. Use this calculator to see the exact saving for your situation.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.