The true cost
Van Finance Calculator
Work out monthly payments and the total cost on van finance, with a business VAT toggle.
Monthly & total, side by side
Monthly
£422.65
Total payable
£31,287
Interest £6,287 · balloon £9,000
Monthly
£577.58
Total payable
£29,724
Interest £4,724
Monthly
£577.58
Total payable
£29,724
Interest £4,724
The lowest monthly is rarely the cheapest deal. Compare the total amount payable — that's the true cost.
How we work this out
Monthly = amount financed (price − deposit) × monthly rate ÷ (1 − (1 + monthly rate)^−term). Total payable = deposit + payments. The VAT toggle shows the price ex-VAT and inc-VAT (price × 1.20). A VAT-registered business may reclaim the VAT, subject to use.
VAT reclaim and tax treatment depend on your business and how the van is used. Confirm with your accountant — this is not tax advice.
Full method: how we calculate.
Van finance is usually HP or contract purchase, and a VAT-registered business can often reclaim the VAT on the van. This calculator shows the monthly payment and the total amount payable, with a toggle for ex-VAT and inc-VAT figures.
For a business, the VAT treatment changes the real cost. Enter the price, deposit, term and APR above, and switch the VAT toggle to see the monthly and the total both ways.
How does van finance work?
Van finance spreads the cost of a van over monthly payments, usually through HP or contract purchase, for sole traders, limited companies and individuals. A VAT-registered business can often reclaim the VAT on a commercial van.
Most van buyers use HP, because you own the van at the end and it stays on the books as an asset. Contract purchase works like PCP with a balloon. For a personal van, a personal loan is also an option.
Van finance and VAT
A VAT-registered business can usually reclaim the 20% VAT on a commercial van, which cuts the real cost. A £25,000 van ex-VAT is £30,000 inc-VAT — and that £5,000 of VAT may be reclaimable.
Check the VAT treatment
A worked example on a van
A £25,000 van (ex-VAT) on HP with £2,500 down over 48 months at 9.9% APR costs about £565 a month, for a total of around £29,621. On the inc-VAT price of £30,000, the monthly and total are higher until any VAT is reclaimed.
Worked example
HP vs contract purchase on a van
HP ends with you owning the van; contract purchase keeps the monthly lower with a balloon, like PCP. Most businesses choose HP so the van is an owned asset.
For a fuller business view, including contract hire, use the business car finance calculator. Compare the total to own, not just the monthly.
| HP | Contract purchase | |
|---|---|---|
| Monthly | Higher (≈ £565) | Lower (with balloon) |
| Balloon? | No | Yes |
| Own it? | Yes, at the end | Only if you pay the balloon |
| Total to own | ≈ £29,621 | Higher overall |
Tax and your van
Beyond VAT, a business van can bring capital allowances and other tax reliefs — but the rules depend on your set-up. Always confirm the treatment with your accountant.
The finance side is straightforward; the tax side is not. Use this calculator for the monthly and the total cost, then check the business calculator and speak to your accountant about reliefs and how the van is treated.
Was your van finance mis-sold?
Van finance from 2007–2024 can carry the same hidden-commission claims as car finance. If a broker raised your rate for a bigger commission, you may be owed redress.
The FCA's redress scheme follows the Supreme Court ruling of 1 August 2025. Estimate your position with the compensation estimator — an estimate, not a promise, and free to claim yourself.
Frequently asked
How does van finance work?
Can I reclaim VAT on a van?
What's the best finance for a van?
Is van finance the same as car finance?
Do I pay VAT on van finance?
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