Calculator
Hire purchase (HP) calculator
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Last updated: .
With hire purchase (HP) you pay a deposit, then fixed monthly payments until the amount borrowed and interest are repaid — usually you own the item once the final payment is made. Enter the figures from a quote to see the monthly cost and total interest.
Illustrative only, not financial advice. Results depend entirely on the figures you enter. Figures filled in below are labelled “Example figure” — they aren’t live rates, offers or recommendations.
Estimate an HP agreement
Your illustrative results
- Monthly payment
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- Total payable
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- Total interest
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- Amount borrowed
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- Total including deposit
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What you’d pay each month for the term.
All monthly payments added together (excluding the deposit).
Total payable minus the amount borrowed.
Price minus your deposit.
Everything paid: deposit plus monthly payments.
How this HP calculator works
It treats the amount borrowed as a fixed-rate loan repaid in equal monthly instalments. Unlike PCP, there’s no large final payment, so monthly payments are usually higher but you repay the full amount over the term.
Some HP agreements include an option-to-purchase fee with the last payment. If your quote has one, it isn’t included here unless you add it to the price.
Things to check on a real quote
- The APR and total amount payable on the lender’s pre-contract information.
- Any fees, including an option-to-purchase fee.
- What happens if you want to end the agreement early — HP has specific rules on voluntary termination.
- How the cost compares with a PCP or a personal loan.
The formulas we use
Amount borrowed: L = P − D. Monthly rate from APR: r = (1 + APR)^(1/12) − 1.
Monthly payment: M = ((P − D) × r) ÷ (1 − (1 + r)^−n). If the APR is 0%: M = (P − D) ÷ n.
Total payable: M × n. Total interest: Total − (P − D).
FAQ
What’s the difference between HP and PCP?
With HP you repay the full amount over the term and usually own the item at the end. With PCP part of the cost is deferred to an optional final payment (the GFV), so monthly payments are lower.
Can I use this for things other than cars?
Yes — the maths is the same for any fixed-rate hire purchase agreement.
Why might my quote be different?
Lenders round payments and may add fees. Always use the figures on the lender’s quote.
Does this calculator store my figures?
No. Everything is worked out in your browser and nothing is stored or sent anywhere.
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