Farm machinery finance calculator

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Farm Machinery Finance Calculator | UK Agricultural Finance Tool
🇬🇧 Agricultural Finance · UK

Farm Machinery Finance Calculator

Estimate monthly repayments, total cost of credit, and compare hire purchase, finance lease, and contract hire options for tractors, combines, and all agricultural equipment.

🚜 All machinery types covered
📊 3 finance structures compared
💷 VAT & AIA tax relief included
📅 2024/25 UK market rates
3
Finance types
HP, Lease, Contract Hire
5.9%
Typical APR
Hire purchase, good credit
£1m
AIA allowance
Annual Investment Allowance
100%
Free to use
No sign-up needed
Free Tool

Calculate your machinery finance

Enter your equipment cost, deposit, preferred term, and finance type to get an instant monthly payment estimate with full cost breakdown.

Your finance details

Fill in the fields below for an instant estimate

Equipment & cost details
£

Typical new tractor: £60,000–£180,000. Used: £15,000–£80,000.

£

Most lenders require 10–20% deposit. Higher deposit = lower monthly payments.

20%

Final lump sum at end of agreement. Higher balloon = lower monthly payments but more to pay at end.

6.5%

Typical agricultural HP rates: 4.5–9% APR. Finance lease: 5–10%. Credit history affects your rate.

Additional options

Your Finance Estimate

Based on 2024/25 UK agricultural lender rates

🚜

Enter your equipment cost, deposit, and finance details, then click Calculate to see monthly payments and the full cost breakdown.

Finance Guide

Which finance type suits you?

The right structure depends on your cash flow, tax position, and whether you want to own the machinery at the end.

🤝

Hire Purchase (HP)

You hire the machinery and make fixed monthly payments. Ownership transfers to you at the end of the agreement on payment of a nominal option-to-purchase fee. Interest is fixed and you can claim AIA on the full cost in year one.

Ownership transfers AIA eligible Fixed payments
📋

Finance Lease

The finance company owns the asset; you lease it and make payments covering the full cost plus interest. Often used to manage cash flow — monthly payments may be lower than HP. VAT-registered businesses can reclaim VAT on payments.

No ownership VAT reclaimable Off balance sheet
🔄

Contract Hire

Fixed monthly rental with no balloon payment and no ownership. At the end of the agreement you simply return the machine. Ideal for businesses that want to always work with newer equipment and avoid disposal risk.

Return at end No residual risk Upgrade easily
💷

Seasonal Payment Plans

Many agricultural lenders offer payments aligned to farming income — e.g. higher payments post-harvest, lower in spring. Reduces cash flow pressure during quieter months while still spreading the cost.

Harvest-aligned Cash flow friendly
🌱

FETF Grants

The Farming Equipment and Technology Fund offers grants of up to 40% towards eligible equipment including precision farming tools, robotics, and slurry management systems. Grants do not need to be repaid.

Up to 40% grant Precision farming
Reference

Finance types compared

A quick-reference comparison of the three main agricultural finance structures available in the UK.

Feature Hire Purchase Finance Lease Contract Hire
Ownership at end ✓ Yes ✗ No ✗ No
Typical APR range 4.5 – 9% 5 – 10% Fixed rental
Balloon / residual ⚬ Optional ✓ Common ✗ None
AIA tax relief ✓ Full cost ⚬ Lease payments ⚬ Rental only
VAT treatment VAT on purchase VAT on payments VAT on rentals
Disposal risk ✗ Your risk ⚬ Shared ✓ Lender’s risk
Typical deposit 10 – 20% 10 – 15% Often 0%
Cost Factors

What affects your finance rate?

Agricultural lenders assess multiple factors when setting your APR. Understanding these helps you get the best deal.

💳

Credit profile

Your business credit history is the biggest single factor. A clean record can secure rates 2–4% lower than a borrower with missed payments or defaults.

💰

Deposit size

A larger deposit reduces lender risk and typically secures a lower rate. Putting down 25–30% rather than 10% can save thousands over the term.

📅

Finance term

Shorter terms usually attract lower rates but higher monthly payments. Longer terms spread cost but increase total interest paid significantly.

🚜

Equipment age

New machinery is easier and cheaper to finance. Used equipment over 5 years old may attract higher rates or shorter maximum terms due to depreciation risk.

📊

Business turnover

Lenders assess whether your farm income comfortably covers repayments. Higher turnover and consistent profitability unlock better rates and higher credit limits.

🏦

Lender type

Agricultural specialist lenders (e.g. Close Brothers, AgriBank) often beat high-street banks on machinery finance. Manufacturer finance arms can also offer promotional rates.

Our Promise

Estimates built on real UK rates

Our farm machinery finance calculator uses current 2024/25 rate data from agricultural lenders, RICS benchmarks, and published market statistics — not generic approximations.

We factor in your deposit, balloon payment, term, VAT position, and available grants to produce the most realistic estimate possible before you approach a lender.

  • ✓Based on 2024/25 UK agricultural lender rates
  • ✓HP, Finance Lease, and Contract Hire all modelled
  • ✓VAT reclaim and AIA tax relief correctly applied
  • ✓FETF grant deduction included where applicable
  • ✓Seasonal payment profiles explained
  • ✓No data stored — runs entirely in your browser
Help & Info

Farm machinery finance FAQs

What is the typical interest rate for farm machinery finance in the UK?
Typical hire purchase APRs for agricultural machinery in the UK range from around 4.5% to 9% depending on credit profile, deposit size, and equipment age. Finance lease rates run slightly higher at 5–10%. Promotional rates from manufacturer finance arms (e.g. John Deere Financial, CNH Industrial Capital) can occasionally be as low as 1.9–3.9% APR on specific models. Always compare at least three lender quotes.
Yes — machinery purchased on hire purchase qualifies for the Annual Investment Allowance (AIA), which allows you to deduct the full cost (up to £1m per year) against taxable profits in the year of purchase, regardless of whether it’s paid for outright or on HP. Finance lease payments are deducted as a business expense over the lease term instead. Contract hire rentals are fully deductible as an operating expense. Always consult an agricultural accountant to confirm your position.
Most agricultural HP and finance lease agreements require a deposit of 10–20% of the equipment cost. Some lenders will accept 0% deposit for well-established farm businesses with strong balance sheets, though this typically carries a higher interest rate. A larger deposit (25–30%+) usually unlocks better rates and lower monthly payments. Part-exchange of existing machinery can also count towards a deposit.
A balloon payment (also called a residual value payment) is a larger lump sum due at the end of a hire purchase or finance lease agreement. Including a balloon reduces monthly payments significantly during the term. At the end, you can pay the balloon to own the machine outright, refinance it, or part-exchange the machinery with the balloon going towards the next purchase. The size of the balloon is usually set to reflect the expected residual value of the machinery.
Yes — the Farming Equipment and Technology Fund (FETF) in England offers grants of up to 40% of the cost of eligible equipment including precision farming technology, robotics, slurry management, and animal health equipment. The minimum grant is £1,000 and maximum is £500,000 per applicant per round. Rounds open periodically; check the GOV.UK website for current availability. Wales, Scotland, and Northern Ireland have equivalent schemes under their own agricultural support programmes.
Yes, most agricultural lenders finance used machinery, though terms may differ. Lenders typically require the machinery to be under 10–12 years old at the start of the agreement, and the maximum term is often shorter (e.g. 36–48 months rather than 72–84). Interest rates on used equipment tend to be 1–2% higher than on new machinery. Specialist agricultural finance brokers can often source better terms for used equipment than high-street banks.
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