The true cost
Business Car Finance Calculator (UK)
Work out the monthly cost of financing a car through your business, with a VAT toggle.
Monthly payment
£403.70
Total amount payable
£30,877
if you keep the car
PCP result
- Amount financed
- £22,500
- Deposit
- £2,500
- Balloon (GMFV)
- £9,000
- Total interest
- £5,877
Your monthly payment is only half the story — the total is what you actually hand over. Figures are estimates; your real quote depends on the lender and your credit.
How we work this out
We use the same amortisation as a PCP or HP deal, with an optional 20% VAT view. Total payable = deposit + payments + any balloon.
Tax and VAT treatment vary by business and use — confirm with your accountant.
Full method: how we calculate.
Business car finance lets a company fund a car through contract purchase, contract hire or a lease, with possible tax and VAT treatment. This calculator shows the monthly and total cost, ex- and inc-VAT.
What is business car finance?
Business car finance is funding a vehicle through a company rather than personally, using contract purchase, contract hire or a lease.
It can offer tax advantages a personal deal can't, but the right structure depends on how the car is used and your VAT position.
Business car finance options
The main options are business contract purchase, business contract hire and a lease — each with different ownership and tax treatment.
Compare with a personal lease if the car is mainly for private use.
| Option | Own it? | VAT | Best for |
|---|---|---|---|
| Contract purchase | Optional (balloon) | On the finance element | Flexibility to own |
| Contract hire | No | Often reclaimable | Fixed-cost motoring |
| Lease | No | Often reclaimable | Simple budgeting |
Can you claim VAT or tax?
A VAT-registered business can often reclaim some or all of the VAT on a contract hire or lease, and may claim capital allowances on a purchase.
The rules depend on private use and the type of vehicle — this is general information, not tax advice, so confirm your position with an accountant.
Business vs personal car finance
Business finance can be cheaper after tax, but personal finance is simpler and avoids benefit-in-kind issues.
If the car is mostly personal, a personal deal is often cleaner. Work out both and compare the true cost.
Frequently asked
What is business car finance?
What are the business car finance options?
Can you claim VAT on business car finance?
Work out your next step
Independent calculators — pick the one that fits your situation.