Hire Purchase (HP) Calculator

Estimate UK HP monthly payments, finance cost, and total repayable for a vehicle.

100% Local Processing

About the Hire Purchase (HP) Calculator

Use this Hire Purchase calculator to estimate an illustrative vehicle-finance repayment from the agreed vehicle price, deposit, part-exchange contribution, APR, and agreement term. It keeps the vehicle price separate from the amount financed so you can see how your upfront contribution changes the balance. The result shows estimated equal monthly instalments, cost of credit, and total repayable using a consistent standard amortising model. It is designed for UK-style HP terminology and uses pounds sterling. It is not a PCP calculator and does not include a balloon or guaranteed future value payment. Actual lender quotations can differ because of fee timing, payment dates, APR methodology, rounding, and agreement terms.

How to estimate Hire Purchase payments

Enter the agreed vehicle price before any deposit or part-exchange contribution.
Enter your deposit and the actual equity or contribution applied from any part exchange.
Enter the APR and choose the agreement term in months.
Open Advanced / fees only if the agreement includes a separate option-to-purchase fee.
Review the amount financed, estimated monthly payment, cost of credit, and total repayable.
Optional: enter your first payment date to see the estimated remaining balance and where you are in the repayment schedule today.
Open the repayment schedule if you want to see how the illustrative balance reduces each month.

Examples and worked results

Illustrative five-year HP estimate

Input

Vehicle price: £20,000
Deposit: £2,000
Part exchange: £0
APR: 7.9%
Term: 60 months

Result

Amount financed: £18,000.00
The calculator then estimates equal monthly instalments, cost of credit, and total repayable from the same model.

This is an illustration, not a lender quotation. The figures update immediately if you change the contribution, APR, term, or final fee.

How the HP estimate works

The amount financed is the vehicle price minus the deposit and part-exchange contribution. The calculator converts the annual APR into a matching effective monthly rate, then applies the standard amortising-loan formula for equal regular instalments. Each payment covers that month’s interest first, with the rest reducing principal, so the balance falls throughout the term.

A separate option-to-purchase fee is not spread into the monthly instalments. If entered, it is shown as a final fee and included in total repayable and cost of credit. This calculator is for HP only. It does not calculate PCP balloon or GFV payments.

If you enter a first payment date, the repayment schedule adds calendar due dates by advancing one calendar month at a time from that anchor. The estimated remaining balance comes from the same illustrative schedule at today’s date—it is not an early-settlement or lender account balance.

Common use cases

Comparing different deposit amounts
Comparing 36, 48, and 60 month HP terms
Estimating a monthly vehicle-finance repayment
Understanding the total cost of borrowing
Checking a dealership HP quote approximately
Seeing how actual part-exchange equity changes the financed amount

Important notes and limitations

This is an illustrative calculation, not an actual lender quote or approval decision.
APR calculations, fee timing, payment dates, first or final payments, and rounding can differ between agreements.
It does not calculate PCP, early settlement, arrears, late fees, affordability, eligibility, or lender-specific payment-date conventions.

Practical tips

Compare total repayable as well as the monthly payment.
Increasing the deposit generally reduces the financed balance when other figures stay unchanged.
A longer term can reduce a monthly payment while increasing the total borrowing cost at a positive APR.
Check every fee in the actual agreement.
Distinguish a trade-in vehicle’s market value from the actual positive equity applied to the new agreement.

Frequently Asked Questions

What is Hire Purchase?

Hire Purchase is a vehicle-finance structure where you normally make an upfront contribution and regular payments over an agreed term. Under a typical agreement, ownership transfers after all required payments and any applicable option-to-purchase fee have been made, subject to the agreement terms.

How is an HP monthly payment calculated?

This calculator starts with the amount financed, then applies a consistent monthly rate derived from the APR across the selected number of monthly instalments.

What does APR mean?

APR is an annualised rate measure. Lender quotations can use regulated methodology, fee timing, payment dates, and rounding that differ from this illustrative model.

Does a larger deposit reduce HP payments?

Usually, yes. A larger deposit reduces the amount financed when the vehicle price, APR, and term remain unchanged.

What is the cost of credit?

For this model, it is the total amount paid through the finance agreement above the amount financed, including any optional final option-to-purchase fee entered.

Does this calculator work for PCP?

No. This is an HP-only calculator. Use the separate PCP Car Finance Calculator for agreements with an optional final payment or guaranteed future value.

What is the difference between HP and PCP?

HP generally repays the financed vehicle balance over the agreement. PCP typically uses a substantial optional final payment or GFV, which can reduce monthly payments for the same starting balance.

Do I own the car at the end of HP?

Under a typical HP agreement, ownership transfers after all required payments and any applicable option-to-purchase fee have been made, subject to the agreement terms.

Can I include part exchange?

Yes. Enter the actual positive equity or contribution applied to the new agreement, not automatically the trade-in vehicle’s full market value.

Why is a dealer quote different?

A lender may use different APR calculations, payment dates, fee treatment, first or final payment amounts, and penny rounding.

Can I calculate 0% HP?

Yes. At 0% APR, the calculator divides the amount financed equally across the selected monthly instalments, then adds any separate final fee to the total repayable.

Can I see how much is left on my HP schedule?

Yes. Enter the first payment date and the calculator will use the estimated repayment schedule to show the remaining balance and payments at the current date.

Related tools

PCP Car Finance Calculator

Estimate UK PCP monthly payments, balloon payment, remaining payments, and cost to own.

PCP Early Settlement Calculator

Estimate a UK PCP settlement balance and check positive or negative equity.

Percentage Calculator

Calculate percentages, increases, decreases, percentage differences, and more instantly.

Payment	Opening balance	Interest	Principal	Payment amount	Closing balance
1	£20,000.00	£87.85	£292.06	£379.91	£19,707.94
2	£19,707.94	£86.56	£293.35	£379.91	£19,414.59
3	£19,414.59	£85.28	£294.63	£379.91	£19,119.96
4	£19,119.96	£83.98	£295.93	£379.91	£18,824.03
5	£18,824.03	£82.68	£297.23	£379.91	£18,526.80
6	£18,526.80	£81.38	£298.53	£379.91	£18,228.27
7	£18,228.27	£80.06	£299.85	£379.91	£17,928.42
8	£17,928.42	£78.75	£301.16	£379.91	£17,627.26
9	£17,627.26	£77.42	£302.49	£379.91	£17,324.77
10	£17,324.77	£76.10	£303.81	£379.91	£17,020.96
11	£17,020.96	£74.76	£305.15	£379.91	£16,715.81
12	£16,715.81	£73.42	£306.49	£379.91	£16,409.32
13	£16,409.32	£72.08	£307.83	£379.91	£16,101.49
14	£16,101.49	£70.72	£309.19	£379.91	£15,792.30
15	£15,792.30	£69.36	£310.55	£379.91	£15,481.75
16	£15,481.75	£68.00	£311.91	£379.91	£15,169.84
17	£15,169.84	£66.63	£313.28	£379.91	£14,856.56
18	£14,856.56	£65.25	£314.66	£379.91	£14,541.90
19	£14,541.90	£63.87	£316.04	£379.91	£14,225.86
20	£14,225.86	£62.48	£317.43	£379.91	£13,908.43
21	£13,908.43	£61.09	£318.82	£379.91	£13,589.61
22	£13,589.61	£59.69	£320.22	£379.91	£13,269.39
23	£13,269.39	£58.28	£321.63	£379.91	£12,947.76
24	£12,947.76	£56.87	£323.04	£379.91	£12,624.72
25	£12,624.72	£55.45	£324.46	£379.91	£12,300.26
26	£12,300.26	£54.03	£325.88	£379.91	£11,974.38
27	£11,974.38	£52.60	£327.31	£379.91	£11,647.07
28	£11,647.07	£51.16	£328.75	£379.91	£11,318.32
29	£11,318.32	£49.71	£330.20	£379.91	£10,988.12
30	£10,988.12	£48.26	£331.65	£379.91	£10,656.47
31	£10,656.47	£46.81	£333.10	£379.91	£10,323.37
32	£10,323.37	£45.34	£334.57	£379.91	£9,988.80
33	£9,988.80	£43.87	£336.04	£379.91	£9,652.76
34	£9,652.76	£42.40	£337.51	£379.91	£9,315.25
35	£9,315.25	£40.92	£338.99	£379.91	£8,976.26
36	£8,976.26	£39.43	£340.48	£379.91	£8,635.78
37	£8,635.78	£37.93	£341.98	£379.91	£8,293.80
38	£8,293.80	£36.43	£343.48	£379.91	£7,950.32
39	£7,950.32	£34.92	£344.99	£379.91	£7,605.33
40	£7,605.33	£33.41	£346.50	£379.91	£7,258.83
41	£7,258.83	£31.88	£348.03	£379.91	£6,910.80
42	£6,910.80	£30.35	£349.56	£379.91	£6,561.24
43	£6,561.24	£28.82	£351.09	£379.91	£6,210.15
44	£6,210.15	£27.28	£352.63	£379.91	£5,857.52
45	£5,857.52	£25.73	£354.18	£379.91	£5,503.34
46	£5,503.34	£24.17	£355.74	£379.91	£5,147.60
47	£5,147.60	£22.61	£357.30	£379.91	£4,790.30
48	£4,790.30	£21.04	£358.87	£379.91	£4,431.43
49	£4,431.43	£19.46	£360.45	£379.91	£4,070.98
50	£4,070.98	£17.88	£362.03	£379.91	£3,708.95
51	£3,708.95	£16.29	£363.62	£379.91	£3,345.33
52	£3,345.33	£14.69	£365.22	£379.91	£2,980.11
53	£2,980.11	£13.09	£366.82	£379.91	£2,613.29
54	£2,613.29	£11.48	£368.43	£379.91	£2,244.86
55	£2,244.86	£9.86	£370.05	£379.91	£1,874.81
56	£1,874.81	£8.23	£371.68	£379.91	£1,503.13
57	£1,503.13	£6.60	£373.31	£379.91	£1,129.82
58	£1,129.82	£4.96	£374.95	£379.91	£754.87
59	£754.87	£3.32	£376.59	£379.91	£378.28
60	£378.28	£1.66	£378.28	£379.94	£0.00