One formula for both. Hire purchase = equal monthly instalments until the goods are paid (balloon 0). Lease purchase = the same payment with an optional large final / balloon. You type the APR — this is not a country credit-law engine and not a lender quote.
16.67% of the price
e.g. 12–60 · default 36
Implied monthly rate 1.00%
Added to the financed amount (not paid upfront)
0 for straight hire purchase. Leave a large final figure for lease purchase (cars).
P = price − deposit + fee. Balloon B stays due at month n. Monthly rate r = APR/100/12. If r = 0, monthly = (P − B) / n. Else monthly = (P − B/(1+r)n) × r / (1 − (1+r)−n) — the standard remaining-balance / balloon PMT. APR is treated as nominal compounded monthly unless you type 0.
Same monthly-payment maths. Hire purchase is equal instalments until the goods are paid for (balloon 0). Lease purchase adds an optional large final / balloon / residual payment — common on cars — so the monthly figure is smaller and you still owe that balloon at the end of the term.
Amount financed P = cash price − deposit + arrangement fee (the fee is added to the financed amount, not paid upfront). Balloon B is treated as remaining at the end. Monthly rate r = APR ÷ 100 ÷ 12, n = months. If r = 0, monthly = (P − B) / n. Otherwise monthly = (P − B / (1+r)n) × r / (1 − (1+r)−n). Self-check: price 12,000, deposit 2,000, 36 months, 12% APR, balloon 0 → P = 10,000, r = 0.01, monthly ≈ 332.14. Same deal with balloon 3,000 → monthly ≈ 262.50.
Not necessarily. This tool treats the APR you enter as a nominal annual rate compounded monthly (monthly rate = APR ÷ 12), unless you type 0. Lenders may compound differently, include fees in APR, or quote a flat rate. It is not a lender quote.
It is added to the amount financed, so you pay interest on it across the term. If your agreement charges the fee upfront in cash instead, leave this box at 0 and add it yourself to “extra vs cash”.
No. You enter the price, deposit, term, APR, fee, and balloon. We do not apply country consumer-credit rules, cooling-off rights, or a lender’s underwriting. Figures are formula-only. Not financial advice — see Terms.