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Asset Finance / Hire Purchase Calculator

Work out the monthly repayment and total cost of financing a vehicle or piece of equipment via hire purchase, lease or PCP, including any final balloon payment.

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Datos verificados · julio de 2026

How does a balloon payment change the monthly cost?

It reduces the amount amortised monthly, because only the non-balloon portion of the loan is repaid in instalments — the balloon itself is settled separately at the end (paid, refinanced, or the asset returned, depending on the agreement type).

Fuente: FCA — Consumer credit / car finance guidance (gov.uk/consumers/car-finance); Finance & Leasing Association (FLA) hire purchase and PCP explainers (fla.org.uk), 2025/26. · actualizado 2026

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Todo sobre Asset Finance / Hire Purchase Calculator

📋Presentación+

The amount financed is the asset price less any deposit, repaid over the term via a reducing-balance annual interest rate. If you set a balloon (or PCP-style final payment), its present value is deducted from the amount amortised each month, so the monthly instalment only repays the non-balloon portion — the balloon itself falls due as a lump sum at the end.

💡 Buenas prácticas

  • A lower monthly payment with a large balloon shifts cost to the end of the agreement — check you can afford (or refinance) the balloon when it falls due.
  • Compare the annual interest rate, not just the monthly payment, across lenders — a longer term can look cheaper per month but cost more overall.
  • Putting down a larger deposit reduces both the amount financed and the total interest paid.

🔢 Ejemplo concreto

£30,000 asset price, £3,000 deposit, 8% annual rate over 36 months, no balloon: roughly £846/month, with total interest of around £4,470 over the term.

📖Guía de uso+

Cómo usar esta calculadora

  1. 1

    Enter the asset's price and any deposit you're putting down.

  2. 2

    Enter the annual interest rate quoted by the lender and the term in months.

  3. 3

    If it's a PCP or finance lease, enter the balloon/final payment.

  4. 4

    Read the monthly payment, total cost and effective cost rate.

📚Glosario+
Balloon payment
A large final payment (common in PCP and finance leases) due at the end of the agreement, which keeps the monthly instalments lower during the term.
Effective cost rate
Total interest paid over the agreement expressed as a percentage of the asset's price — a quick way to compare financing offers of different terms and rates.
ℹ️Fuentes y actualizaciones+
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Última actualización de datos

7 de julio de 2026

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Fuentes y referencias

FCA — Consumer credit / car finance guidance (gov.uk/consumers/car-finance); Finance & Leasing Association (FLA) hire purchase and PCP explainers (fla.org.uk), 2025/26.

Los datos de esta calculadora se actualizan periódicamente para reflejar los últimos baremos oficiales. En caso de duda, consulte las fuentes oficiales mencionadas arriba.

FAQ — Asset Finance / Hire Purchase Calculator

How does a balloon payment change the monthly cost?+

It reduces the amount amortised monthly, because only the non-balloon portion of the loan is repaid in instalments — the balloon itself is settled separately at the end (paid, refinanced, or the asset returned, depending on the agreement type).

Is the effective cost rate the same as the APR?+

Not exactly — the effective cost rate here is total interest divided by asset price, a simple comparison metric. The APR quoted by lenders follows FCA-mandated disclosure rules and can differ slightly depending on fees included.

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