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Asset finance calculator
Work out the monthly payment on equipment or vehicle finance with a deposit and an optional balloon, and see the true APR behind a flat-rate quote.
The starting figures are an example, not market rates. VAT is not included: on hire purchase it is generally paid upfront on the asset, on a lease it is usually added to each rental.
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Illustrative only, not an offer. These figures are arithmetic on the numbers you enter. A lender sets your actual rate, fees and terms on application, and its own quote is the only figure that binds. Nothing you type into this calculator leaves your browser.
How the calculation works
The amount financed is the price less your deposit. With an annual interest rate, the calculator works out the level monthly payment that, with the balloon at the end, repays that amount with interest. With a flat rate, interest is charged on the full amount financed for the whole term (amount × flat rate × years) and spread evenly across the payments, which is how flat-rate quotes are built.
Why the APR line matters
A flat rate charges interest on money you have already paid back, so it understates the cost. The calculator solves for the APR that produces the same payments: a flat rate converts to an APR of roughly double. That is the figure to compare against a loan.
Balloons and deposits
A balloon lowers the monthly payment by leaving a lump sum to the end, and increases the interest you pay, because more of the balance stays outstanding for longer. Plan how you will meet it: from cash, by refinancing, or by selling the asset. The asset finance comparison lists each lender’s published terms.
Frequently asked questions
What is the difference between a flat rate and an APR?
A flat rate charges interest on the original amount for the whole term. An APR reflects that the balance falls as you repay. The same payments give a much higher APR than flat rate; the calculator shows both.
Does the calculator include VAT?
No. Enter the price excluding VAT. On hire purchase, VAT is generally paid upfront; on a lease it is usually added to each rental.
Are fees included in the APR?
No. The APR line is before fees; fees you enter are added to the total cost of the asset.