PPI Refund Calculator
Your PPI Refund Estimate
Premiums Refund-
Interest on PPI Refund-
Statutory Interest (8%)-
Less Tax (20%)-
Total PPI Refund-
Average PPI Refunds by Product
| Product | Average Claim | Average Refund |
|---|---|---|
| Personal Loan | £2,000–£5,000 | £3,000–£8,000 |
| Credit Card | £1,500–£3,500 | £2,000–£5,500 |
| Mortgage PPI | £5,000–£20,000 | £8,000–£35,000 |
| Store Card | £500–£1,500 | £800–£2,500 |
Refund includes premiums, interest on PPI, plus 8% statutory interest. Tax deducted on statutory interest only.
Key Facts
Statutory Interest
8%/year
Tax on Interest
20%
Avg Mortgage PPI
£15,000+
How to Use This Calculator
1
Enter premiums paid
The total PPI premiums you paid over the life of the policy.
2
Enter interest charged on PPI
If PPI was added to a loan, you also paid interest on the PPI premium.
3
Enter years since PPI started
This determines the statutory interest calculation.
4
Select product type
The type of financial product the PPI was attached to.
5
Review your refund
See premiums, interest, statutory interest and net refund after tax.
Frequently Asked Questions
What is PPI?
Payment Protection Insurance (PPI) was sold alongside loans, credit cards, mortgages and store cards. It was intended to cover repayments if you could not work due to illness, injury or redundancy. Billions of pounds of PPI was mis-sold in the UK.
Can I still claim PPI?
The FCA deadline for PPI claims was 29 August 2019. However, if you complained before the deadline, your claim is still being processed. Some claims may still be possible through the FOS or courts in limited circumstances.
How is the refund calculated?
Your refund includes: (1) all PPI premiums paid, (2) any interest you paid on those premiums (if added to a loan), (3) 8% simple interest per year on the total, minus (4) 20% income tax on the statutory interest portion only.
Why is tax deducted?
HMRC treats the 8% statutory interest as taxable income. The lender deducts 20% basic rate tax before paying you. If you are a non-taxpayer, you can reclaim this tax from HMRC using form R40.
What if my lender has gone bust?
If the financial firm has gone into administration, you can claim from the Financial Services Compensation Scheme (FSCS) up to £85,000 per person per firm.
Was all PPI mis-sold?
Not necessarily. PPI was mis-sold if you did not know you had it, were told it was compulsory, were self-employed (and the policy excluded self-employment), had pre-existing conditions not covered, or were already covered elsewhere.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.