Hire Purchase (HP) Calculator
Fixed monthly payments, no final balloon payment. Calculate your HP finance costs with our free tool.
Used by 5000+ users
Free to use • No registration required • Instant results
Calculator Inputs
Your HP Finance Results
Amount to be financed
£17,500.00
Estimated monthly payment
£427.23
Term
48 months
Optional purchase payment
N/A
Total repayments
£23,006.85
Total interest
£3,006.85
HP FAQs
What is Hire Purchase (HP)?
HP is a car finance product where you pay a deposit and fixed monthly payments over the term with no large final payment. You own the car after the last payment.
Is there a balloon payment in HP?
No. HP typically has no optional final payment; the finance is fully repaid over the term.
How is APR used here?
APR is converted to a monthly rate to calculate fixed monthly repayments using standard amortisation.
Does a higher deposit reduce my payments?
Yes. A larger deposit reduces the amount financed, lowering both monthly payments and total interest paid.
Can I settle early?
You can usually settle early by requesting a settlement figure from your lender. Early settlement fees may apply.
Are fees included?
This calculator excludes fees (arrangement, option-to-purchase). Check your lender’s documentation for all charges.
What term should I choose?
Common terms are 24–60 months. Longer terms reduce monthly payments but increase total interest paid.
Is credit approval required?
Yes. This tool does not provide credit decisions. Lenders assess affordability and creditworthiness.
Will changing APR affect total interest?
Yes. Higher APR increases monthly payments and total interest; lower APR reduces both.
Is this financial advice?
No. This calculator is for illustration only. Confirm figures with your lender before committing.