Hire Purchase Calculator

Hire purchase (HP) finance allows you to pay for your car or equipment, by spreading the cost over a period of time the HP agreement.

How to use the calculator
1. Enter the monetary value of equipment you are planning to purchase under this type of agreement, excluding any VAT
2. Enter the vat VAT applicable rate (20% is the default value)
3. Slide the interest rate bar to the nearest %
4. Enter number of months you intend to finance for
5. Eenter the initial deposit (excluding any VAT)

The calculator will show the monthly payment amount, total repayment amount, iInterest included in the finance, and payment
in advance amount (the sum of calculated VAT and initial payment).

Please note that additional fees may be added by lenders, such as: arrangement fees, delivery costs, optional extras, administration fees. These are not reflected in this calculator.

The finance provider usually owns the equipment until you’ve made all the payments, but accounting and VAT treatment may vary, depending on the agreement type. This reflects to the Annual Investment Allowance and vat payment and vat reclaim.

We can help your business to calculate or/and check equipment finance quotes and evaluate the accounting and taxation treatment.

Contact us