Asset finance calculator
Estimate monthly payments on equipment, vehicles or machinery, with a deposit and an optional final balloon payment.
How this calculator works
The amount financed is the asset cost less your deposit. The calculator then works out a level monthly payment over the term, leaving any balloon to be paid at the end. A balloon lowers the monthly payment but increases the interest, because more of the balance stays outstanding for longer.
Payments are assumed to be monthly in arrears, with no VAT and no documentation or option-to-purchase fees.
What lenders will look at
How VAT is handled depends on the agreement. On hire purchase, VAT on the asset is usually paid upfront and the business owns the asset at the end. On a finance lease, VAT is normally charged on each rental and the business does not own the asset.
Lenders look at the asset as well as the business: what it is, its useful life and its resale value. New, mainstream assets are usually easier to fund than specialist or older ones. Our guide to hire purchase or leasing compares the two.
Find out more about asset finance, or tell us what you need and we will search the market for lenders suited to your case.
Questions about this calculator
What is a balloon payment?
A balloon is a larger final payment agreed at the start. It reduces the regular monthly payment, which can help cash flow, but the total cost is usually higher and the balloon has to be paid, refinanced or settled by selling the asset.
Should I put down a deposit?
A deposit reduces the amount financed, the monthly payment and the interest. Some agreements need one; others can fund the full cost. Keeping cash in the business can matter more than a lower payment, so compare both.
Can I use this for vehicle and fleet finance?
Yes. The same calculation applies to vans, cars, plant and most business equipment. See vehicle and fleet finance for more.
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Want real figures for your business?
A calculator can only use the numbers you give it. Tell us what the funding is for and we will search our panel of 300+ lenders for options suited to your case. No obligation, and free to enquire.