Equipment finance and chattel mortgage calculator

Equipment finance repayments use the standard principal and interest amortisation formula, with one twist: most equipment loans carry a balloon (also called a residual) payable as a lump sum at the end of the term. The balloon is excluded from the amortising balance and discounted back to today, which lowers the monthly repayment but leaves a final payment to refinance, pay out, or settle by selling the asset. Your repayment therefore depends on four inputs: the amount financed (purchase price less any deposit or trade-in), the interest rate, the term, and the balloon percentage.

A balloon (chattel mortgage and hire purchase) or residual (lease) is a lump sum owed at the end of the finance term. Setting a balloon of 20% to 30% can cut the monthly repayment noticeably, but you pay more total interest because the balance stays higher for longer. At the end of the term you either pay the balloon out, refinance it over a further term, or sell or trade the equipment and use the proceeds. For leases, the ATO publishes minimum residual values that vary by term, so a lease residual is not entirely a free choice.

On a chattel mortgage, a GST-registered business generally claims the GST in the purchase price on the BAS for the period it buys the equipment, even though the loan is repaid over several years. For a hire purchase entered into on or after 1 July 2012, the ATO allows the credit up front on a cash or non-cash basis. On a lease, GST is claimed on each rental instead. Confirm the timing for your business with your accountant.

This one: tick the passenger car box and it caps the GST credit at $6,353, one-eleventh of the $69,883 car limit for 2026-27 (ATO). The limit applies to vehicles built for fewer than nine passengers and a load under one tonne, so leave the box unticked for a ute, van or truck rated to carry a tonne or more.

There is no single published rate: the banks quote each asset and business. The calculator starts at an illustrative 10% p.a. For a benchmark, the RBA’s average rate on new fixed-rate small business loans was 8.09% in August 2026 (table F7), and makers’ promotions can be far lower: Kubota published business offers of 0% to 8.10% p.a. over 36 months on 10 October 2026. Replace the rate with your quote.

Yes. A deposit or trade-in reduces the amount financed, so it lowers both the monthly repayment and the total interest paid. Many lenders offer 100% finance on equipment with no deposit at all, which preserves working capital but costs more over the term. A deposit can also improve the rate offered, particularly on used equipment or for businesses with a shorter trading history.

It gives a close estimate of the repayment on the numbers you enter, but it excludes establishment fees, monthly account fees, broker fees, and any insurance premiums you choose to finance. Those typically add a small amount to the real repayment. Actual rates depend on the lender, the asset, and your credit and business profile, so treat the output as an indicative figure for comparison and budgeting rather than a quote.