Hire Purchase (HP) Calculator
Work out monthly payments, total interest, and see how each payment splits between principal and interest over the term. Enter your car price, deposit, term, and APR — we'll show the key figures and charts below.
Comparing running costs? Try our Fuel Fill Calculator, Fuel Trip Calculator, or Station Savings Calculator.
Amount to be financed
£22,000.00
Estimated monthly payment
£556.92
Fixed payment each month (final payment may differ by a few pence).
Term
48 months
Total repayments
£26,732.20
Total interest
£4,732.20
Breakdown by year
Each bar is a full calendar year of the agreement (year 1 = months 1–12, year 2 = 13–24, and so on). The stack shows total principal and interest paid in that year — early years are usually more interest-heavy.
Total cost analysis
How the total you pay splits between your deposit, the loan principal, and interest.
- Deposit (upfront)£3,000.00
- Loan principal£22,000.00
- Interest£4,732.20
- Total£29,732.20
Frequently asked questions
- How is the monthly payment calculated?
- We use the standard amortising loan formula for a fixed APR: your amount financed (car price minus deposit) is repaid in equal monthly instalments, with interest charged on the outstanding balance each month. APR is treated as nominal annual rate compounded monthly — the usual way car finance is quoted in the UK.
- Does this include fees or optional extras?
- No. This calculator only covers principal and interest from the figures you enter. Real HP agreements may add arrangement fees, optional insurance, or balloon payments — always read your agreement.
- Why might my real payment differ?
- Lenders round amounts, may use a slightly different day-count or fee structure, and promotional rates can vary. Use these numbers as a planning estimate, not a quote.
- Is this financial advice?
- No. FuelNearby provides general-purpose tools for illustration only. For regulated advice on credit or affordability, speak to a qualified adviser or your lender.
Illustrative estimates only — not a credit offer. FuelNearby is not a lender and does not provide regulated financial advice. Always confirm figures with your finance company before you sign.