Equipment Finance Calculator

Estimate repayments with balloon/residual — for chattel mortgage, hire purchase & leases

Finance Details
$5k$1M$2M
1%13%25%
6 mths42 mths84 mths
0% (none)30%60%
Residual amount due at end of term: $30,000
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Your Estimate
Monthly Repayment
—
per month (excl. balloon)
Total Payments
—
repayments + balloon
Total Interest
—
cost of finance
Interest Share of Total Cost
—

How to Use This Equipment Finance Calculator

Our equipment finance calculator estimates your monthly repayments for a chattel mortgage, hire purchase, or finance lease with an optional balloon/residual value. Enter the equipment cost, interest rate, loan term in months, and your desired residual/balloon percentage. All results update in real time as you adjust the sliders.

The residual (balloon) is a lump sum due at the end of the loan term representing the equipment's expected remaining value. Setting a balloon reduces your monthly repayments during the term but means a larger payment — or a refinance — is required at the end. Setting it to 0% gives you a full principal-and-interest repayment with nothing owing at the end of term.

Equipment Finance Structures in Australia

Chattel Mortgage: The most common structure for Australian businesses. You own the asset from day one, the lender takes a mortgage over it as security, and you can claim GST upfront, depreciation, and interest as tax deductions. Suits businesses registered for GST purchasing plant, vehicles, and machinery.

Hire Purchase: The financier owns the asset during the term; ownership transfers to you on final payment. Tax treatment differs from chattel mortgage — claim depreciation and interest, but GST is paid monthly over the term rather than upfront.

Finance Lease: The financier retains ownership throughout. You lease the asset and return it at the end (or re-finance the residual). Lease payments are fully tax deductible. Common for large or rapidly depreciating equipment where ownership is less important than use.

Operating Lease: Short-term; the asset remains on the financier's books. Monthly payments are operating expenses. Best for assets requiring frequent upgrades or when off-balance-sheet treatment is preferred.

Frequently Asked Questions

A balloon (also called a residual value) is a lump-sum payment due at the end of the loan term. It represents the anticipated remaining value of the asset at that point. For example, a $100,000 piece of equipment with a 30% balloon means $30,000 is deferred to the end — your monthly repayments are calculated on just $70,000. At the end, you pay the $30,000 outright, trade in the equipment, or refinance the residual. A larger balloon lowers monthly repayments but increases your total cost of finance.
Equipment finance interest rates in Australia typically range from around 5% to 15% p.a. depending on the asset type, business credit profile, loan term, and lender. New assets from established suppliers generally attract lower rates than used or niche equipment. Strong business financials and a good credit history will help you secure the best rates. A broker like Dark Horse Financial can compare rates across a broad lender panel on your behalf.
For a chattel mortgage, GST-registered businesses can claim the full GST on the purchase price upfront in the same BAS period the asset is acquired — regardless of the finance term. For a hire purchase, GST is claimed as each instalment is paid. For a finance or operating lease, GST is claimed on each lease payment. The GST treatment is an important factor in choosing the right structure — your accountant can advise which is most beneficial for your cash flow.
Almost any tangible business asset can be financed, including: commercial vehicles and trucks, construction and earthmoving equipment, manufacturing machinery, medical and dental equipment, hospitality and commercial kitchen equipment, IT hardware and technology, agricultural machinery, and fitouts. Lenders generally prefer assets that are moveable, identifiable by serial number, and have a secondary market — this makes them easier to repossess and sell if needed. Speak to a broker about assets that fall outside standard categories.
Many equipment finance applications can be approved within 24–48 hours for established businesses with clean credit, particularly for lower loan amounts ($150,000 and below) where lenders use simplified "low doc" assessment. Larger or more complex deals involving specialised equipment or businesses with complex financials may take several days to a week. Having your ABN, financials (or bank statements for low-doc), and the equipment invoice or quote ready will significantly speed up the process.
A longer term reduces monthly repayments but increases total interest paid and means you may still owe money on an asset that is wearing out or becoming obsolete. A shorter term costs less in interest and ensures you own the asset outright before it depreciates significantly, but requires higher monthly cash flow. A useful rule of thumb: match the loan term to the asset's useful life. Don't finance a 3-year-life asset over 7 years. Use the term slider above to see how different terms affect your repayments.

Ready to Finance Your Equipment?

Our team compares chattel mortgage, hire purchase, and lease options across a wide panel of lenders to find the right structure and rate for your business and asset type.

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Disclaimer: The results generated by this calculator are indicative estimates only, provided for general information purposes. They do not constitute an offer of finance, credit approval, or a formal quote, and do not account for fees, charges, GST treatment, or lender-specific conditions. Tax treatment of equipment finance depends on the structure chosen and your individual circumstances — always consult a qualified accountant. Actual repayments and rates will vary by lender and application. Dark Horse Financial Pty Ltd is a Credit Representative No. 465 325 of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence No. 509484). To approved applicants only.