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Asset financeLast updated: 13 Nov 2026
Business car finance calculator
Our business car finance calculator shows your monthly repayments, total interest and APR on a company car in seconds, so you know what the vehicle will cost your business before you apply. When you're ready, you can compare car finance offers from our panel of UK lenders with one application.
Car finance calculator
Enter the loan terms below to see your estimated repayments.
How much do you want to borrow?
£
£50,000
£1,000£2 million
How long do you want to pay your loan back for?
2 years
3 months10 years
What is the annual interest rate?
17%
0.1%99%
Please note that some lenders may charge additional arrangement fees, which are not included in this calculation and should be considered when comparing total borrowing costs.
Loan amount£50,000
Total interest£9,333
Annual interest rate17%
Monthly interest rate1.417%
Daily interest rate0.0466%
Factor rate1.1867
Flat rate9.33%
Effective APR17.00%
Daily repayment£82.41
Annual repayment£29,667
£2,472 monthly repayment
Capitalise is trusted by 200,000+ UK businesses
£2bn in funding approved
Regulated by the FCA since 2016
130+ UK business lenders
Powered by Experian business credit data
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How does the business car finance calculator work?
The business car finance calculator works out your repayments from three figures: the amount you want to finance, the repayment term and the annual interest rate. It then shows your monthly, daily and annual repayments, the total interest you'll pay, and the equivalent APR, flat rate and factor rate. To get an accurate figure, enter the amount you'll actually borrow rather than the full price of the car. That's the vehicle price minus your deposit and any part exchange value. You can then change the term and rate to see how each one affects what you pay.
When you sign up to Capitalise for free, our vehicle finance calculator goes a step further. Search for the exact car you want by its registration number or its make and model, and we'll show you how much you could borrow for it and what it could cost your business each month.
How much could my business borrow for a car?
How much your business could borrow for a car depends on the vehicle's price, the deposit you put down, the repayment term, the interest rate and what your business can comfortably afford each month. Most business car finance agreements run for 1 to 5 years, with a deposit of typically 10% to 20% on hire purchase. As an example, here's what a £25,000 car with a 10% deposit (£22,500 borrowed) costs at 11% APR over different terms.
Term | Monthly repayment | Total repayment | Total interest |
|---|---|---|---|
1 year | £1,989 | £23,863 | £1,363 |
2 years | £1,049 | £25,168 | £2,668 |
3 years | £737 | £26,518 | £4,018 |
5 years | £489 | £29,352 | £6,852 |
10 years | £310 | £37,193 | £14,693 |
A longer term lowers your monthly payment, but you pay interest for longer. Over 5 years, the same car costs £5,489 more in interest than it does over 1 year, so the shortest term your cash flow can comfortably handle is usually the cheapest overall.
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How do a deposit and a balloon payment change my repayments?
A larger deposit lowers both your monthly repayments and the total interest, because you're borrowing less. On the same £25,000 car at 11% over 3 years, raising the deposit from 10% to 20% cuts the monthly repayment from £737 to £655 and saves around £446 in interest. Some hire purchase agreements also include a balloon payment, a larger final payment due at the end of the term. A balloon lowers your monthly repayments, but you pay more interest overall because more of the balance stays outstanding for longer.
Our calculator assumes the full amount is repaid in equal instalments, so if your quote includes a balloon, your monthly figure will be lower than the result shown. As an example, £22,500 over 3 years at 11% with an £8,000 balloon works out at around £548 a month instead of £737. The total interest rises from £4,018 to around £5,230.
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What affects your business car finance rate?
Business car finance is priced mainly on the car itself and how much you borrow, because the vehicle secures the finance. These factors have the biggest effect on the rate and the amount you're offered:
As a guide, rates start from 6.9% a year with high street banks, though they usually lend at that level only to businesses with at least 3 years of trading, a very good credit history and healthy profits.
What types of business car finance can I use this calculator for?
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Finance lease
Lease the car for most of its working life, then extend, hand it back, or have the lender sell it and pass you a rebate of most of the proceeds.
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Hire purchase
Pay a deposit then fixed monthly instalments. You own the car once the agreement ends.
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Operating lease
Similar to a finance lease, but often includes maintenance and servicing in the price.
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Contract hire
A fixed monthly rental for an agreed term and mileage, with the car returned at the end.
Looking for something else? Try our other loan calculators
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Looking for car finance?
Get an instant estimate of how much you could borrow above, then apply for car finance and compare quotes from our panel of UK lenders.
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Frequently asked questions
Page last reviewed on by Nick Richardson