Motor Finance Payout Estimator UK 2026: FCA-Indicative Calculator

This page provides a free, indicative estimator to help you model a possible redress range for a mis-sold car finance agreement. The estimator is based on parameters published by the FCA in its motor finance review consultation documents and on the FOS's published approach to discretionary commission arrangement complaints. It does not promise any specific payout and does not constitute financial or legal advice. Your actual entitlement, if any, will depend on the specific terms of your agreement, your lender's investigation, the FOS's assessment, and the outcome of the FCA's ongoing review. This estimator is a starting point for your own research, not a prediction or quote.

How this estimator works

The estimator takes four inputs from your original motor finance agreement: the loan amount, the loan term in months, the APR you were charged, and the year the agreement was signed. It applies a range of commission-uplift differentials drawn from the FCA's published review analysis to estimate the range of interest overcharge that may have resulted from a DCA. The output is a LOW, MID, and HIGH indicative figure, not a quote, not a guarantee, and not a legal assessment.

Every output is accompanied by a mandatory disclaimer explaining the limitations of the estimate. You must read the disclaimer before using any figure for any purpose.

You do not need to use a claims management company to claim. The estimator is provided free of charge as an informational tool only.

Methodology: the FCA-published parameters this estimator uses

The estimator applies a commission-uplift differential range to your total calculated interest charge. This approach is based on the FCA's published analysis in its motor finance review consultation materials, available at fca.org.uk/consumers/motor-finance-complaints, and in the FCA's Policy Statement PS20/8 (July 2020), available at fca.org.uk/publication/policy/ps20-8.pdf.

In its review analysis, the FCA identified that DCA arrangements typically resulted in an effective APR uplift of between approximately 0.5 and 3 percentage points above the rate a consumer would have been charged absent the DCA. The FCA's example calculations in published consultation materials applied this differential to the total interest paid over the life of the agreement to arrive at an indicative "excess interest" figure.

The estimator uses three scenarios:

• LOW estimate: Models a 0.5 percentage point APR differential, representing an agreement where DCA uplift, if present, was at the lower end of the FCA-identified range.
• MID estimate: Models a 1.5 percentage point differential, representing a mid-range DCA uplift scenario.
• HIGH estimate: Models a 3 percentage point differential, representing an agreement where the dealer charged the maximum available uplift under the DCA arrangement.

The formula in plain English: the estimator calculates the total interest you paid over the agreement term at your actual APR, then applies the relevant differential percentage to arrive at an "excess interest" range. This excess interest figure approximates the potential redress quantum before any FOS compensatory interest addition.

This is a simplified model. It does not account for: the specific commission structure in your agreement; any offsetting benefits received; the FOS's individual assessment of causation; lender defences; or the methodology the FCA may ultimately prescribe for any industry-wide scheme.

Why this is an estimate, not a quote

No calculator, regardless of its sophistication, can predict what compensation you will actually receive from a mis-sold car finance claim. There are several reasons for this:

Your agreement terms are unique. The commission structure, the degree of dealer discretion, and the applicable interest rate range are specific to your agreement with your lender. Without the actual agreement documents, any calculation is necessarily approximate.

The FCA review is ongoing. The FCA has not yet published final redress methodology for any industry-wide scheme. When it does, the prescribed calculation method may differ from the approach used in this estimator. The FCA's consultation papers, while informative, are not binding methodology documents.

The FOS applies a case-by-case assessment. Even within the DCA framework, the Financial Ombudsman Service considers the individual circumstances of each complaint. The FOS may uphold a complaint in full, in part, or reject it. The FOS published approach to motor finance complaints is available at financial-ombudsman.org.uk.

Lenders have contested claims. Several major lenders have appealed decisions and challenged the legal basis of DCA claims. While the Supreme Court ruling in 2025 has provided greater clarity, the lender's position in any individual case remains a variable.

The calculator does not account for compensatory interest. FOS routinely adds 8% simple compensatory interest to redress awards, running from the date of the original overpayment. This addition can materially increase the total figure above the "excess interest" amount alone, but it is not included in the estimator range because it varies by the age of the agreement.

For all of these reasons, the range shown by this estimator should be treated as a starting reference point, useful for understanding the order of magnitude of a potential claim, not as a prediction.

How to claim what you may be owed: the free route

The free route to making a mis-sold car finance complaint involves three stages, in order of cost and complexity:

Stage 1: Complain directly to your lender. This is free and requires no professional assistance. Write to your lender's complaints department identifying your agreement, stating that you believe it involved an undisclosed discretionary commission arrangement, and requesting that the lender investigate. Your lender is the finance company (Black Horse, Close Brothers, MotoNovo, Santander Consumer Finance, and so on), not the car dealer. See our full guide for step-by-step instructions: Mis-Sold Car Finance UK 2026: How to Claim Direct, Free.

Stage 2: Escalate to the Financial Ombudsman Service. If your lender rejects your complaint or fails to respond within the applicable timeframe, refer your complaint to FOS at financial-ombudsman.org.uk. FOS is free of charge and can award compensation up to its published award limits.

Stage 3 (optional): Consider a CMC or solicitor. If you prefer not to manage the claim yourself, a regulated claims management company or solicitor can handle the complaint on your behalf. However, they will typically charge 25-36% of any compensation recovered. You do not need to use a claims management company to claim. There is no advantage a CMC can offer in the lender or FOS complaint process that you cannot access yourself via the free routes above.

If you have already been quoted by a CMC: how to verify

Claims management companies sometimes provide their own "estimates" of potential compensation to consumers who contact them or who respond to marketing communications. These estimates are not binding, are not based on a formal assessment of your agreement, and are typically marketing tools rather than rigorous calculations.

If you have received a CMC estimate, you can use this estimator to cross-check whether the figure cited is consistent with the FCA-indicative range for your agreement size and interest rate. If the CMC's figure is significantly higher than the HIGH estimate produced by this tool, treat that discrepancy with caution and ask the CMC to explain the basis of their calculation.

Regardless of any CMC estimate, you retain the right to pursue the claim directly with your lender and via FOS at no cost. A CMC estimate does not create any obligation to use that CMC's services, and you should read any CMC contract carefully before signing, particularly any assignment of your right to claim.

What happens if the FCA introduces an industry redress scheme

The FCA has confirmed an industry-wide redress scheme for motor finance DCA and non-DCA commission claims under Policy Statement PS26/3, published 30 March 2026. The scheme covers approximately 12.1 million regulated motor finance agreements entered into between 6 April 2007 and 1 November 2024. Under the scheme, lenders are required to identify affected customers proactively and pay redress according to the FCA-prescribed methodology, with average payouts estimated at around £830 per agreement. As of 1 May 2026, the scheme is subject to legal challenge from both lenders and a consumer organisation, which the FCA has stated it will defend.

The FCA scheme uses a calculation methodology that differs from this estimator. The FCA's prescribed method may produce different figures depending on the specific circumstances of the agreement.

Key practical points:

• Submitting a direct complaint now does not prevent you from benefiting from the FCA scheme.
• If the FCA scheme pays less than you have already recovered via a direct claim or FOS award, you would keep the higher amount.
• The FCA expects millions of claims to be paid out in 2026 and the vast majority resolved by end of 2027, subject to the outcome of the legal challenge. All updates are published at fca.org.uk/consumers/motor-finance-complaints.

For a full analysis of the FCA scheme and its implications, see: Mis-Sold Car Finance UK 2026: How to Claim Direct, Free.

Sources and verification

All factual claims and methodology parameters in this article are drawn from the following primary sources, verified as at 8 May 2026:

• FCA: Motor finance complaints (consumer guidance page)
• FCA Policy Statement PS20/8: Increasing transparency and fairness in the motor finance market (July 2020)
• FCA Policy Statement PS26/3: Motor Finance Consumer Redress Scheme (30 March 2026)
• Financial Ombudsman Service: Motor finance complaints and DCA approach
• Financial Ombudsman Service: Data and insight (award statistics)
• Court of Appeal: Johnson v FirstRand Bank Ltd judgment (October 2024)
• Supreme Court: Hopcraft, Johnson and Wrench [2025] UKSC 33 (1 August 2025)
• Consumer Credit Act 1974 (legislation.gov.uk)

Frequently asked questions

How accurate is this car finance compensation calculator?

The estimator produces an indicative range based on FCA-published review parameters, specifically the commission-uplift differentials identified in the FCA's motor finance review analysis and Policy Statement PS20/8. It is not a legal or financial assessment of your specific agreement. Its accuracy depends on how closely your actual DCA uplift matches the modelled differential, which cannot be determined without your agreement documents. Treat the range as a reference order of magnitude, not a prediction.

Why doesn't the calculator give me a single figure?

No calculator can responsibly predict a single compensation figure for a mis-sold car finance claim, because the actual amount depends on variables that are not publicly known: the specific commission arrangement in your agreement, the interest rate differential attributable to the DCA, and the outcome of your lender's investigation or FOS adjudication. Providing a single figure would misrepresent the uncertainty inherent in the claim process. The range format, LOW, MID, HIGH, reflects the spread of outcomes documented in FCA review analysis.

Can the calculator estimate my payout if my agreement was a lease?

No. The estimator applies only to regulated consumer credit agreements in the form of Personal Contract Purchase (PCP) or Hire Purchase (HP) products entered into between 2007 and 2021. Personal Contract Hire (PCH) and operating lease agreements are generally outside the scope of the FCA's DCA review, as they are not regulated consumer credit agreements under the Consumer Credit Act 1974. If you select a year outside the 2007-2021 DCA window, the estimator will display a "Not in DCA window" message.

Should I wait for the FCA scheme or claim now?

The FCA confirmed its industry-wide redress scheme under Policy Statement PS26/3 on 30 March 2026. As at May 2026 the scheme is subject to legal challenge before the Upper Tribunal, which the FCA has stated it will defend. Submitting a direct complaint now costs nothing, preserves your legal position, and does not prevent you from benefiting from the scheme later. If the FCA scheme ultimately offers more than you have already recovered, you would receive the higher amount. The FCA's motor finance review page at fca.org.uk is the authoritative source for updates on scheme timing.

Will using this calculator affect my eligibility to claim?

No. This estimator runs entirely in your browser and does not transmit any data to any server. Using it creates no record with your lender, the FCA, FOS, or any other body, and has no effect on your eligibility to claim. It is a private informational tool only.

What documentation do I need to verify my actual entitlement?

To pursue an actual complaint, you will need: the name of your lender (not the dealer), the approximate date and value of the original agreement, and ideally the agreement number. If you do not have these, your credit file will show the lender's name, and a Subject Access Request to that lender will produce the full agreement documents within 30 days, free of charge. You do not need a solicitor or CMC to submit a SAR or a complaint.