Hire Purchase Calculator
Wondering what a new asset will cost your business monthly? Use our car hire purchase calculator to get a clear affordability estimate for your next loan. Discover a payment plan that helps you get the asset you need while protecting your cash flow.
Free Hire Purchase LoanCalculator
This is where you can map out the numbers. Enter the asset details into our car hire purchase calculator below to see how a hire purchase plan could work for your business. Our online calculator makes it easy to model different loans.
Let us help find your best rate and loan options from over 80 Australian lenders.
Select loan terms
$
$
%
years
%
Loan Summary
Net Loan
Interest
- Total Interest
- $8,091.08
- Total Repaid
- $48,091.08
- Monthly Payment
- $801.52
- Total Acquisition Cost
- $58,091.08
- Avg. Annual Interest Cost
- $1,618.22
| # | Payment ($) | Interest ($) | Principal ($) | Balance ($) |
|---|---|---|---|---|
| 1 | 801.52 | 250.00 | 551.52 | 39,448.48 |
| 2 | 801.52 | 246.55 | 554.97 | 38,893.51 |
| 3 | 801.52 | 243.08 | 558.44 | 38,335.07 |
| 4 | 801.52 | 239.59 | 561.93 | 37,773.14 |
| 5 | 801.52 | 236.08 | 565.44 | 37,207.70 |
| 6 | 801.52 | 232.55 | 568.97 | 36,638.73 |
| 7 | 801.52 | 228.99 | 572.53 | 36,066.20 |
| 8 | 801.52 | 225.41 | 576.11 | 35,490.09 |
| 9 | 801.52 | 221.81 | 579.71 | 34,910.38 |
| 10 | 801.52 | 218.19 | 583.33 | 34,327.05 |
| 11 | 801.52 | 214.54 | 586.98 | 33,740.07 |
| 12 | 801.52 | 210.88 | 590.64 | 33,149.43 |
| Year | Total Payments ($) | Total Interest ($) | Total Principal ($) | Remaining Balance ($) |
|---|---|---|---|---|
| 1 | 9,618.22 | 2,767.67 | 6,850.57 | 33,149.43 |
| 2 | 9,618.22 | 2,235.87 | 7,382.37 | 25,767.06 |
| 3 | 9,618.22 | 1,662.74 | 7,955.50 | 17,811.56 |
| 4 | 9,618.22 | 1,045.13 | 8,573.11 | 9,238.45 |
| 5 | 9,618.22 | 379.58 | 9,238.66 | 0.00 |
A Clear Path to Your Next Asset Ownership
Here’s how our streamlined lending process is designed to help your business succeed:
80+ Lenders
More options mean we can find more competitive rates for your hire purchase.
As Fast As 3 Hours
Our lender matching is built for speed, so you can get your asset funded sooner.
90% Approval Rate
Our intelligent matching process aligns your business with the right financier from the start.
Ready to Turn Your Estimate into a Real Asset?
You've used our online calculator and have an idea of the numbers. The next step is to connect with a specialist who can confirm your eligibility and find you a real, competitive rate for your next business car loan or asset funding.
This is a free assessment to find your options and won't impact your credit score.
How Our Repayment Calculator Works
Mapping Out Your Installment Payments
Simply enter the asset's cost, your preferred term for the loan, and any final balloon payment. The calculator will provide an instant estimate. You can also adjust the repayment frequency. Think of this as your baseline. Lenders will determine your final interest rates based on your business's overall financial health and credit history.
Calculator Tips for Accurate Results
- Asset Price: Be sure to enter the full upfront cost, including GST, to get the most accurate estimate.
- Balloon Payment: A balloon or deferred payment can lower your regular monthly costs. Use the calculator to see how this affects your fixed loan repayment.
- Loan Term: A longer term typically means smaller installment payments, but you may pay more in total interest. Our tool helps you find the right balance.
- Interest Rate: A strong financial profile and good credit score demonstrate you can manage payments, which lenders often reward with more competitive rates.
Your In-depth Guide to Hire Purchase Agreements
What is a Commercial Hire Purchase?
A Commercial Hire Purchase (HP) is a type of asset funding that lets you acquire a business asset and pay for it through an installment plan over a set period. It is similar to a chattel mortgage or a finance lease.
Here’s a breakdown of the journey to asset ownership:
- You Choose the Asset: You find the vehicle or asset your business needs.
- The Financier Buys It: The lender purchases the asset on your behalf.
- You Use It Immediately: You take possession of the asset and start using it to support your business growth.
- You Pay in Instalments: You make fixed repayments to the lender over an agreed term.
- You Take Ownership : Once the final payment is made, the title is transferred, and the asset is fully yours.
This structure, sometimes called a lease purchase or conditional sale, is a popular form of car finance that helps businesses get the tools they need without a large upfront cost impacting working capital.
What are the Key Benefits of a Hire Purchase?
A hire purchase is designed for effective cash flow management. The main advantages include:
- Improved Working Capital: Instead of a large one-off payment, you can spread the cost over several years. This frees up cash for other business needs like marketing or inventory.
- Building Equity: Unlike an operating lease where you simply rent the asset, the goal of HP is ownership. Every installment payment builds your equity.
- Potential Tax Deductions: Your business may be able to claim depreciation on the asset and interest on the repayments as tax deductions. We always recommend speaking with your accountant to understand the specific benefits.
- Simple Budgeting: Because you have fixed repayments, you know exactly how much to budget each month for your loan repayments, which makes financial forecasting more predictable.
What Can I Finance With a Hire Purchase Agreement?
This form of asset-based lending can be used for a wide range of assets. Common examples include:
- Commercial Vehicles: We can arrange car loans for prime movers, trailers, delivery vans, and company cars.
- Construction Assets: Funding for excavators, bulldozers, and specialised trade tools.
- Hospitality Assets : Funding for commercial kitchens, coffee machines, and restaurant fit-outs.
- Professional Services Assets : Commercial loans for IT hardware, servers, office furniture, and printing assets.
How Do I Get Approved for a Hire Purchase?
Our goal is to make the approval process clear. Lenders will assess your eligibility and business health.
Here is what the process with Lend looks like:
- Initial Assessment: You provide basic details about your business. This initial step is free and does not affect your credit score.
- Intelligent Lender Matching: Our online technology reviews your information against the policies of over 80 lenders to find the one most likely to approve your loan.
- Guidance from a Specialist: A finance specialist will contact you to discuss the matched option, explain the easy terms, any insurance requirements and answer any questions about the loan.
- Finalising the Application: If you proceed, your specialist will guide you through submitting the formal application to the lender.
Explore Our Calculator & Other Tools
Business Loan Calculator
Calculate monthly repayments and total interest for business loans
- Loan amount up to $5M
- Term 1- 30 years
- Variable & fixed rates
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Get the Asset Your Business Needs to Grow
Don't let a high upfront cost stop your business growth. A commercial hire purchase agreement can get you the vehicle or equipment you need now. Let our team and LendIQ™ technology find you a great deal on your asset finance, fast.
This process will not affect your credit rating in any way.