Asset finance, hire purchase repayment calculator

Estimate what an asset finance, hire purchase could cost each month, and the total over the term. Adjust the amount, term and indicative rate to see how repayments change.

£994

Indicative monthly payment at 8.9%

Total interest

£7,688

Total repayable

£47,688

Amount

£25k

£2m

Term

months

1 year

7 years

Indicative rate

% APR

See my real terms About this facility

Reading the numbers

The figures here are indicative illustrations, not quotes or offers. Your real terms depend on the lender and your circumstances.

How an asset finance, hire purchase repayment is calculated

This calculator uses the standard amortising repayment formula, the same capital-and-interest method most UK lenders use. Each month you pay the interest due on the outstanding balance plus a slice of the capital, so the balance falls to zero by the end of the term. Early payments are mostly interest; later ones are mostly capital.

Worked example

An asset finance, hire purchase of £40,000 over 4 years at an indicative 8.9% works out at about £993.50 a month, roughly £47,688 repaid in total, of which £7,688 is interest. Change the amount, term or rate above to see how the numbers move.

What affects your rate

The asset itself is the security, so rates are often keener than an unsecured loan; the deposit, asset type and its resale value all feed the rate.

Common questions

Prefer to talk it through?

01702 967564

Is the monthly figure a quote?

No, it's an indicative illustration. Hire purchase is often arranged with an upfront deposit and sometimes a final balloon payment, which this straight capital-and-interest view doesn't model.

What about the deposit and any balloon payment?

What rate should I enter?

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