Asset finance monthly calculator
Asset finance — hire purchase, finance lease or operating lease — spreads the cost of buying or using a piece of equipment, vehicle or machinery over its useful life. This calculator runs the standard amortisation maths: principal financed, monthly payment, total paid and total interest, with an optional balloon payment at the end of the term. It's useful for sanity-checking a quote, comparing terms or modelling the cash-flow impact before talking to a lender.
Cash price of the asset (ex VAT or inc — be consistent).
Share of the price paid up front.
Repayment schedule length.
Used purely to model the monthly payment.
Optional one-off payment at the end of the term (set to £0 if none).
Indicative outputs
- Deposit paid up front
- £3,000.00
- Principal financed
- £27,000.00
- Amortised principal (excludes balloon)
- £27,000.00
- Monthly payment
- £665.50
- Total monthlies over term
- £31,944.20
- Balloon at end of term
- £0.00
- Total paid (deposit + monthlies + balloon)
- £34,944.20
- Total interest
- £4,944.20
Illustrative — actual rate set by lender underwriting. Real quotes depend on the asset type, age, expected residual value, your trading history and credit profile. Documentation fees, option-to-purchase fees and VAT treatment are not modelled here.
How to read these numbers
- Deposit paid up front
- The asset price multiplied by the deposit percentage. Comes out of pocket on day one.
- Principal financed
- Asset price minus the deposit. This is what the lender is putting up against the asset.
- Amortised principal
- Principal financed minus the balloon. The monthly payment is calculated so that this slice is fully repaid by the final monthly instalment.
- Monthly payment
- Standard amortisation: principal × (r/12) ÷ (1 − (1 + r/12)−n), where r is the APR and n is the term in months.
- Balloon at end of term
- The lump sum due at the final scheduled month, on top of that month's instalment. Usually refinanced, settled or rolled into a new agreement.
- Total paid
- Deposit plus all monthly payments plus the balloon. This is the all-in cash outlay over the life of the agreement.
- Total interest
- Total paid minus the original asset price. The cost of using someone else's money to acquire the asset.
What this calculator doesn't include
- Documentation fees, option-to-purchase fees and final-payment administration charges that some lenders apply.
- VAT treatment, which differs between hire purchase (VAT typically due up front) and finance lease (VAT spread across the rentals).
- Residual value risk on operating leases — these are priced on the gap between the asset's purchase and end-of-term resale value, not on full amortisation.
- Insurance, maintenance bundles or asset-tracking that a dealer or lender may include in the headline monthly payment.
- Variable-rate or stepped-payment structures. The calculator assumes a fixed rate and equal monthly instalments.
Decide if asset finance fits
The calculator gives you a monthly-payment shape. The eligibility checker tells you whether asset finance is the right product family for your business given trading history, sector and the specific asset you're buying.
Important — educational guidance only
- Not regulated by the FCA and not a credit broker.
- Not financial, legal or tax advice.
- Not a loan offer and not a guarantee of approval.
- Subject to lender underwriting — criteria can change.
Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.