Car Finance Claim Calculator
Estimate your PCP & HP compensation under the FCA 2026 redress scheme
Last updated: June 2026
What this car finance claim calculator does
If you took out PCP, hire purchase or conditional sale car finance, your dealer may have earned a hidden commission that pushed up your interest rate. On 30 March 2026 the Financial Conduct Authority (FCA) confirmed an industry-wide car finance redress scheme covering an estimated 12 million-plus agreements. This free car finance claim calculator gives you a quick, no-signup estimate of how much PCP or HP compensation you could be owed, using the FCA's published “hybrid remedy” method. It is built for anyone who financed a car and suspects they were charged a commission-inflated rate – especially under the old discretionary commission arrangements (DCAs).
Unlike the claims-management adverts that hide the number behind a form, this tool shows you the actual maths: an estimated loss from the inflated APR, the commission paid, the average of the two, and the compensatory interest on top. The average payout confirmed by the FCA is around £830 per agreement, but your figure depends on how much you borrowed, your rate, your term and when the agreement started. Remember: you never have to pay a claims firm – complaining directly to your lender is completely free.
How the FCA hybrid remedy works
The FCA redress scheme calculates compensation for most people as the average of two amounts, plus interest:
- Estimated loss – an estimate of the extra interest you paid because commission inflated your rate. The FCA applies a discount factor to the interest charged: 21% for agreements that started before 1 April 2014 and 17% for agreements from 1 April 2014 onwards.
- Commission paid – the commission the lender paid the dealer/broker on your agreement. If you don't know it, this calculator estimates it at 2.5% of the amount borrowed as a placeholder.
- Compensatory interest – added on top at the annual average Bank of England base rate plus 1%, with a minimum of 3% per year, running from the year the agreement started to today.
A de minimis rule means no redress is due if the commission was £120 or less (agreements before 1 April 2014) or £150 or less (agreements from 1 April 2014). Only the most serious cases receive 100% of the commission back plus interest, rather than the averaged amount – so this calculator deliberately uses the more common hybrid figure to avoid over-stating your claim.
Worked example
Suppose you borrowed £10,000 on a PCP deal at 10% APR over 4 years, starting in 2019 (so the 17% discount factor applies), and you don't know the commission:
- Estimated loss = average balance (£5,000) × 10% × 17% × 4 years = £340
- Commission estimated at 2.5% of £10,000 = £250
- Hybrid base = average of £340 and £250 = £295
- Compensatory interest 2019–2026 (3%+3%+3%+3%+5.5%+6%+5.25%+5% = 33.75% of £295) = £100
- Estimated total ≈ £395 for this agreement
Larger loans, higher rates and bigger commissions push this well above the £830 average. The figure is an estimate only – the scheme operator recalculates the exact amount from your real agreement.
Frequently asked questions
How much is the average car finance claim payout?
The FCA confirmed an average of around £830 per affected agreement under the redress scheme announced on 30 March 2026. Some people will receive much more and some less, depending on the amount borrowed, the interest rate, the loan term, the commission paid and when the agreement started.
Do I have to pay a claims company to claim car finance compensation?
No. Complaining to your lender and using the FCA redress scheme is completely free. Claims-management companies typically take 25% or more of your payout for work you can do yourself in minutes, so there is no need to pay anyone a fee.
What is the difference between the 17% and 21% discount factors?
The FCA applies a 21% discount factor to the interest on agreements that started before 1 April 2014 and a 17% factor to agreements from 1 April 2014 onwards. The factor estimates the share of your interest attributable to the inflated, commission-driven rate when calculating your estimated loss.
How is the interest on my car finance claim calculated?
Compensatory interest is added at the annual average Bank of England base rate plus 1%, subject to a minimum of 3% in any year, from the year your agreement started until the payout. This calculator uses the published annual base rates to build that interest factor.
Source: FCA – Car finance complaints and the redress scheme (fca.org.uk). Figures confirmed 30 March 2026. This tool is independent and is not affiliated with the FCA.
Related calculators
- Car Loan Calculator – work out monthly repayments and total interest.
- Personal Loan Calculator – compare loan costs across rates and terms.
- Compound Interest Calculator – see how interest builds over time.
- Salary Calculator – take-home pay after tax.
- All UK Calculators – browse the full toolkit.