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Commercial hire purchase calculator

Use our commercial hire purchase calculator to see how much your business can save.

A commercial hire purchase (CHP) is a commercial finance product that enables a business to buy a car.

A financier purchasing a vehicle on behalf of the business. The financer then leases it back to them over an agreed-upon time. At the end of this period, the business takes ownership of the car as long as the price of the vehicle and interest has been paid back in full.

A commercial hire purchase has a range of benefits for businesses. One way to work out these benefits is to use our commercial hire purchase calculator that will give you an indication of your monthly payment.

Leasing calculator

The calculator below is intended as a guide. Remember that each leasing provider and lender is different. It's always important to take into account the comparison rate and any fees and charges associated. This calculator is meant as a guide only and doesn't factor in GST.

*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

Below are a range of commercial car loans

1 - 4 of 4
Updated regularly
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Lumi Unsecured Business Loan
Lumi Unsecured Business Loan
$5,000
$300,000
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Go to site
More Info
Valiant Finance Business Loan Broker
Valiant Finance Business Loan Broker
$5,000
$1,000,000
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Enquire now
ebroker Business Loan
ebroker Business Loan
$5,000
$5,000,000
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Enquire now
ScotPac Boost Business Loan
ScotPac Boost Business Loan
$10,000
$500,000
3 months to 3 years
$0 application fee
A business loan for any industry. Borrow between $10,000 and $500,000, with approved loans funded within 24 hours. Minimum monthly turnover of $10,000 and 1 year of trading history required.
Go to site
More Info
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How do you use the commercial hire calculator?

Using the calculator is simple. Enter your information into the relevant fields and it will calculate your repayments on your car finance.

  • Loan amount. This is the amount you intend to borrow.
  • Term of the loan. The loan term is the amount of time agreed-upon by you and the financier. It's generally between 1 and 5 years for fixed repayments or 1 and 7 years for variable.
  • Residual (balloon) percentage. There is a percentage of the principal that is not paid for in monthly repayments and is paid for at the end of the loan term. This is referred to as a residual or balloon percentage.
  • Residual (balloon) amount. This is the dollar amount that the residual percentage represents.
  • Interest rate. The rate of interest that you pay for the commercial hire purchase. This may be fixed or variable.
  • Repayment frequency. How often do you make repayments? Weekly, fortnightly or monthly?

Example: John's delivery service

John is looking to purchase a new vehicle for his delivery service business. His cash flow won't allow for him to buy a new vehicle, so he wants to know how much his repayments will be with a commercial hire purchase. Using the CHP calculator, he enters the following amounts:

  • Loan amount: $10,000
  • Loan term: 3 years
  • Residual: 15% ($1,500)
  • Interest rate: 8% p.a.

He can see that his monthly repayments will be $274.53. Wanting to save some money, he sees what would happen if he made weekly repayments. Using the calculator, he can see that his weekly repayments would be $63.35, which would be approximately $20 less a month than if he made monthly repayments.

* This is a fictional, but realistic, example.

Have more questions about using the commercial hire purchase calculator?

How can I use the calculator to reduce my repayments?

As outlined in the example above, you can change the information you enter into the calculator and see if your repayments are reduced. By simply changing from monthly to weekly repayments, John was able to reduce the amount he paid each month. You can also increase your residual payment, but keep in mind that this will still need to be paid at the end of the loan term.

How can I reduce the amount of interest I repay on my loan?

Reducing interest and reducing repayments are 2 entirely different things, though you can reduce the interest payable by lowering your principal. You can reduce your interest by lowering your loan term, increasing the frequency of your repayments or by budgeting to make additional repayments.

How accurate is the calculator?

The calculator is an approximation, but it is accurate as long as the information you put into it is correct. Keep in mind the calculator doesn't take into account the fees or other costs that may come with your commercial hire purchase.

Do I need to supply any personal information to use the commercial hire purchase calculator?

No personal information is needed to use the CHP calculator. You only need the loan amount, loan term, interest rate, repayment frequency and residual amount and percentage (if applicable).

Does the commercial hire purchase calculator guarantee my loan repayments?

No, the CHP calculator will only provide you with a repayment amount based on the loan information you provide. It is up to the individual lender to decide what your actual loan and repayments will be.

Need more help?

Picture: Shutterstock

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