Asset finance calculator

How the calculation works

The amount financed is the asset price minus the deposit. Payments are equal monthly instalments at the APR you enter, with the balloon payable at the end.

Monthly payment = (A − B ÷ (1 + i)^n) × i ÷ (1 − (1 + i)^−n), where A is the amount financed, B the balloon and i the monthly rate

A balloon lowers the monthly payment but must be paid, refinanced or covered by selling the asset at the end.

Questions, answered

Should I put down a deposit?

A larger deposit lowers payments and the total interest, but uses cash you might need elsewhere. Compare both in the calculator before deciding.

What happens at the end of hire purchase?

Once the final payment and any option-to-purchase fee are paid, you own the asset.

Does the calculator include VAT?

No. VAT treatment differs between hire purchase and leasing, so check the provider’s quote.

An illustration from the figures you enter, not a quote or advice. A provider’s offer depends on its assessment of your business.