Hire purchase calculator for New Zealand businesses.
The most common asset finance structure in New Zealand, and the simplest to calculate. Enter the amount financed, the term and an indicative rate, and the weekly, monthly and total interest figures update as the sliders move.
Last reviewed 8 September 2026
Indicative repayment
Weekly
$358/week
Indicative only. Not a quote or offer of credit. Actual rates, fees, and repayments depend on the business profile and the lender's decision.
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What it does
The number a hire purchase actually costs each week.
A hire purchase repays the full amount financed across the term, which makes it the easiest structure to calculate and the right starting point for comparing anything else against. There is no residual deferring part of the cost and no lump sum at the end, so the weekly figure is the whole weekly commitment.
The calculation runs in the browser. Nothing is submitted, no personal information is collected on this site, and no credit file is touched. The figure is indicative rather than a quote, which is exactly what makes it useful before an application rather than after one.
Comparing a hire purchase against a lease is the reason most people arrive at a calculator like this, and the comparison is frequently done wrong. A lease payment looks lower because part of the asset’s value is not being repaid, not because the finance is cheaper. The lease against buy calculator on this site is built to make that comparison honestly.
Amount range
$5k to $500k
Term range
6 to 60 months
Rate range
8% to 30% p.a.
Data submitted
None
How to use it
Three inputs, and one common mistake in each.
01
The amount is what is borrowed, not what the asset costs
Where a deposit or a trade-in is being applied, the figure to enter is the balance being financed. Delivery, installation and anything else on the same invoice are commonly financed too and belong in the number.
02
The term is how long the asset will be kept
A longer term lowers the weekly figure and raises the total interest. A term running past the point the asset will be replaced means paying for something already traded, which is the most common avoidable cost in asset finance.
03
The rate is a band rather than a number
Running the calculator at both ends of an indicative band shows how much of the decision genuinely turns on the rate. On shorter terms and smaller amounts it is often less than expected, and the establishment fee matters more.
At a glance
Indicative weekly cost on common amounts.
Produced by this calculator over a 48-month term at the indicative rates shown, rounded. Illustrative only, and not an offer of credit.
| Amount financed | 9% p.a. | 11% p.a. | 14% p.a. |
|---|---|---|---|
| $20,000 | ~$115 / week | ~$119 / week | ~$126 / week |
| $40,000 | ~$229 / week | ~$238 / week | ~$252 / week |
| $60,000 | ~$344 / week | ~$357 / week | ~$378 / week |
| $100,000 | ~$573 / week | ~$596 / week | ~$630 / week |
| $180,000 | ~$1,032 / week | ~$1,072 / week | ~$1,133 / week |
| $300,000 | ~$1,720 / week | ~$1,787 / week | ~$1,889 / week |
Indicative weekly payments over 48 months at three rates. Illustrative, not an offer of credit.
What it excludes
Four things the figure does not include.
The calculation is a standard amortising schedule on the amount, rate and term entered, and nothing else. Establishment and documentation fees are not in it, and on smaller amounts a fee of a few hundred dollars moves the effective cost more than a percentage point of rate does.
A deposit is not in it either. Where a deposit is being paid, the amount to enter is what is actually being borrowed rather than the price of the asset, and the difference is the most common reason a calculated figure and a quoted one disagree.
GST is not in it. Under a hire purchase the amount financed is normally the GST-exclusive price, with the GST generally claimable in the return covering the period the agreement begins, subject to the accountant’s confirmation of the accounting basis used. Entering a GST-inclusive figure overstates the payment.
A residual or balloon is not in the amortising figure. On a lease or a balloon structure the residual is not repaid across the term, so the real payment is lower than a plain amortising calculation shows and a lump sum falls due at the end. The balloon calculator on this site is the one built for that.
A worked case
What a rate band is actually worth.
A Waikato engineering business is quoted $95,000 plus GST for a used machining centre and is weighing an indicative 9% offer from its bank against a 13% offer from a specialist financier that will settle faster.
On these assumptions the difference across a 48-month term is roughly $32 a week. Over the full term that is in the region of $6,600 of additional interest, which is the honest price of the faster settlement. Whether that is worth paying depends on what the delay costs the business, and in this scenario a production contract starting in three weeks made it worth paying.
The point of the comparison is not that one lender is better. It is that a rate difference which sounds large as a percentage often resolves to a weekly number a business can decide on quickly.
Indicative figures
- Amount financed
- $95,000
- Term
- 48 months
- At 9% p.a.
- ~$544 / week
- At 13% p.a.
- ~$576 / week
- Weekly difference
- ~$32
Indicative only, produced by this calculator on the assumptions shown. Not a quote or offer of credit.
Indicative only
This is a calculation, not a quote.
Nothing here is an offer of credit and no rate shown is available on request. The rate a business is charged is a function of its trading history, the asset, any deposit, the term and the lender’s credit assessment together, and only the lender sees all of those. Every figure this page produces is indicative and based on the inputs shown. Actual rates, fees and repayments are set by the lender after assessment.
References
Sources
- Inland Revenue, GST on hire purchase and leases
Backs the note that the calculator works on the GST-exclusive amount financed under a hire purchase.
- Inland Revenue depreciation rate finder
The published source for the depreciation treatment referred to alongside the figures.
- Reserve Bank of New Zealand, interest rate statistics
Context for why indicative rate bands move over time rather than being fixed figures.
FAQ
Using the hire purchase calculator
What formula does this calculator use?
The standard amortising formula, which spreads principal and interest evenly across the term so every payment is the same size. The monthly payment is calculated first, then multiplied by twelve and divided by fifty-two to give the weekly equivalent. That is the same arithmetic a lender uses to build a hire purchase schedule.
Why is a hire purchase payment higher than a lease payment?
Because a hire purchase repays the full amount financed across the term while a lease defers part of the value as a residual. The lease payment is lower because less is being repaid, not because the finance is cheaper. Comparing the two on their weekly figures alone is the most common error in asset finance, and the lease against buy calculator on this site exists to avoid it.
Does the calculator include fees?
No. Establishment and documentation fees sit outside the calculation, and on smaller amounts they can move the effective cost more than a percentage point of rate does. A quote from a lender will show them, and comparing two offers on rate alone without them is the most common way a comparison goes wrong.
Should the GST-inclusive or GST-exclusive price be entered?
Under a hire purchase the amount financed is normally the GST-exclusive price, with the GST generally claimable in the return covering the period the agreement begins, subject to the accountant’s confirmation of the accounting basis used. Entering the GST-inclusive figure therefore overstates the payment.
How does a deposit change the figure?
A deposit reduces the amount financed, so it lowers both the payment and the total interest proportionally. It also reduces the lender’s exposure, which commonly improves the indicative rate offered. The figure to enter here is the balance actually being financed rather than the price of the asset.
Is any information submitted when the calculator is used?
No. The calculation runs entirely in the browser, no personal information is collected on this site, and no credit file is touched. The only thing that leaves the page is the reader, if they choose to use the handoff to our finance partner, and no calculator inputs travel with them.
Why does the rate slider stop at 30%?
Because the range is intended to span the New Zealand business finance market rather than to be unlimited. Asset-secured lending commonly sits in an indicative 8% to 16% band and unsecured business lending runs above it. A slider that reached further would imply the site has a view on lending above that range, and it does not.
Can the calculator tell me what I will be approved for?
No, and nothing on a website can. Approval and pricing are the lender’s decisions after an assessment of the business, the asset and the security position. This page produces an indicative payment on the inputs shown, which is a different and earlier question.
Related
Keep exploring
Lease against buy calculator
The comparison a hire purchase figure alone cannot make.
Read onBalloon payment calculator
What a residual does to the payment, and what falls due at the end.
Read onHire purchase explained
The structure itself, and where it fits.
Read onAbout the calculator
The formula, its assumptions, and what it deliberately leaves out.
Read on