TOOLS

Asset Finance ^Calculator: Your Guide to Financial Planning

The Asset Finance Calculator helps business owners estimate repayments quickly for asset purchases. Many SMEs still rely on a platform or broker such as Funding Agent to source competitive quotes. Using this calculator alongside advice on asset finance can simplify planning.

Secure up to £500,000 in Business Finance with Funding Agent.

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Quick and easy application process
Loan disbursed within 24 hours
No additional charges for early repayment

How To Use The Asset Finance Calculator

Enter asset details

Type the cash price, desired deposit or advance rental, and expected residual or balloon value if relevant. Include VAT only if it will be financed. Learn more about asset finance terms on the asset page.

Select term and rate

Choose the repayment period in months and input either the flat rate or APR offered by your lender. The tool converts these values as needed. For wider lending options, see term loans.

Review outputs

Check the monthly repayment, total interest, and total amount payable. Adjust deposit or term until the costs fit your projected cash flow.

^Benefits of Using the Asset Finance Calculator

An Asset Finance Calculator is an invaluable tool for individuals and businesses seeking to finance equipment or assets. It simplifies the decision-making process by providing instant calculations of financing costs, including interest rates and payment structures. By using this calculator, users can evaluate their financing options efficiently, making it easier to choose the most suitable solution for their financial situation.

Running the numbers early helps businesses negotiate better terms, plan working capital accurately, and decide whether buying or leasing suits their budget. The calculator complements guides on choosing finance types and the broader financing options available.

Faster cost estimates

Improved cash planning

Supplier quote comparison

Start your asset finance application

Generate offers

How Asset Finance Repayments are Calculated

Monthly repayment

Uses annuity maths for equal instalments.

Monthly repayment

The monthly repayment equals (r × P) divided by (1 minus (1 plus r) to the power of minus n) where P is the amount financed, r is the monthly rate (annual rate divided by 12), and n is the term in months. This formula provides a fixed monthly repayment. See more on amortisation.

Total interest paid

Sum all payments minus principal.

Total interest paid

Total interest paid equals (monthly repayment times number of months) minus amount financed, showing finance charges over the life of the loan. It is key for comparing costs. Refer to the interest rate definition.

Effective annual rate

Converts monthly charge to annual APR.

Effective annual rate

The effective annual rate (APR) is calculated as [(monthly repayment × n) divided by P] to the power of (12 divided by n) minus 1. This accounts for compounding, giving a comparable yearly rate across lenders. See details on APR.

Understanding Your Asset Finance Calculator Results

Focus on affordability

Ensure the monthly repayment fits your projected cash flow, considering seasonal fluctuations and other credit commitments. Useful insights are on cash flow.

Test term and deposit

Shorter terms or larger deposits reduce total interest but increase monthly payments. SME asset finance agreements typically run 24 to 60 months. For options, see term loans.

Watch hidden costs

Arrangement fees, document fees, VAT timing, and end-of-term options can affect the true APR. Always confirm these details with your lender. More on costs and fees can be found under terms and conditions.