Hire purchase calculator A clearer plan.

Monthly payment = P × r ÷ [1 − (1 + r)⁻ⁿ]. P is your loan, r is annual reducing rate ÷ 1200, n is tenure in months. At 0%, payment = P ÷ n.

Interest = opening balance × r. Principal = payment − interest. This is reducing-balance financing. Do not enter an old flat-rate quote in the EIR field.

Amounts round to sen each month; the final payment clears rounding differences. First payment after one month, constant rate throughout. Total repayment excludes down payment. Fees, insurance, taxes, and bank-specific daily-rest calculations are excluded. Legacy flat-rate agreements need a different calculation.

References checked 25 October 2026. Rates and tenure eligibility depend on your lender. These are examples, not a bank offer.