Lendus.

Asset finance calculator

What will equipment finance cost per month?

A £60,000 machine on hire purchase over 5 years at 9%, with a £6,000 deposit and no balloon, costs £1,121 a month. Total cost is £73,257 including the deposit, so the finance itself costs £13,257. Adding a £10,000 balloon cuts the monthly payment to £988, but total cost rises to £75,302 because you are borrowing more for longer.

Updated . Lendus is an introducer, not a lender — these figures are indicative and not a quote.

£60,000
10%

Typically 10%–20%. Some lenders fund 100% for strong covenants.

60 months
9%

UK asset finance typically runs 4%–18% depending on the asset, term and credit profile.

£0

A larger final payment that lowers the monthly cost. Common on vehicles, rare on plant.

Your estimate

Indicative only. Not a quote and not an offer of finance.

What this calculator assumes

Frequently asked questions

What is the difference between hire purchase and leasing?
With hire purchase you are buying the asset in instalments and own it at the end, so it sits on your balance sheet and you can claim capital allowances. With a finance or operating lease you are renting it: payments are generally a deductible operating expense, you never take title, and you hand the asset back or re-lease at the end. Hire purchase suits assets you will keep; leasing suits assets that date quickly.
What is a balloon payment and should I use one?
A balloon is a larger final instalment, set against the asset’s expected residual value. It lowers monthly payments but you must either settle it, refinance it, or sell the asset to clear it. It works well for vehicles with a predictable resale value; it is risky on specialist plant that may be worth little at the end of the term.
Can I claim tax relief on asset finance?
On hire purchase you can normally claim capital allowances on the full asset cost from the outset, and the interest element of each payment is deductible. Full expensing and the Annual Investment Allowance may allow the whole cost to be written off in year one for qualifying plant and machinery. Lease payments are usually deducted as an operating expense instead. Confirm the position with your accountant before you sign.
Does asset finance need additional security?
Usually not. The asset itself is the security, which is why asset finance is often available to businesses that would struggle to get an unsecured loan of the same size. A personal guarantee may still be requested from directors of smaller or newer companies.

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