Calculator
Equipment Finance Calculator
Estimate repayments on machinery, vehicles and plant, with or without a balloon, and see what the balloon really does to the total cost before you commit.
Results use a standard amortisation formula with the balloon as a residual owing at the end of the term. Estimates only: actual lender calculations differ with fees, repayment timing and the specific facility. The rate is whatever you enter; equipment finance has no single market rate.
Want these numbers checked? Send the result across and we'll tell you what a lender would make of it. No meeting required.
The balloon is the decision, so test it here first
Most equipment finance conversations are really a balloon conversation: how much repayment relief now, against how much left owing when the term ends and what the machine will be worth that day. Run your numbers both ways above and the trade-off is visible in 10 seconds: the balloon lowers the repayment and raises the total interest, every time. The right setting depends on how the asset earns and what it will realistically be worth at the end of the term.
A calculator cannot tell you which lender will approve the deal, what rate your asset and trading history actually price at, or whether a chattel mortgage, lease or hire purchase suits your tax position. That is broker and accountant territory: start with our equipment and asset finance page for the structures, our business equipment finance guide for how lenders assess the deal, or our mining services finance page if the machine is going onto contract work, where mobilisation and progress claims belong in the same plan.
For a proper read on your numbers, send the result through or book a short call.
Frequently asked questions
How are equipment finance repayments calculated?
Equipment finance repayments come from a standard amortisation formula with 4 inputs: the amount financed, the interest rate, the term, and any balloon payment left owing at the end. Without a balloon, the loan amortises to zero like any other loan. With a balloon, the repayments only amortise the gap between the amount financed and the balloon, so the periodic repayment falls while the balloon waits at the end of the term. This calculator runs both, and shows the balloon amount and total interest beside the repayment so the trade-off is visible.
What is a balloon payment and how does it change the repayment?
A balloon, sometimes called a residual, is a lump sum left owing when the loan term ends. It lowers the periodic repayment because less of the principal is amortised during the term, which can better match how a machine earns, but total interest is higher because more of the balance stays outstanding for longer. At the end of the term the balloon is paid out, refinanced, or covered by trading or selling the asset. The honest test is the asset's realistic value when the balloon falls due: a balloon that sits comfortably under that value is a structure, and one that sits above it is a problem.
What interest rate should I enter?
The rate you have actually been quoted for your deal. Equipment finance has no single market rate: the rate moves with the asset type, its age and hours, the term, the deposit, the strength and age of the business, and which lender the deal is placed with. Two businesses buying the same machine can be quoted differently by the same lender. If you do not have a quote yet, treat the result as a shape rather than a price, and see our equipment and asset finance page for what actually drives the rate.
Can the amount financed include GST and on-costs?
Usually. Most equipment is financed at its full purchase price including GST, and on a chattel mortgage a GST-registered business can generally claim the GST credit at its next BAS, which many borrowers then pay down onto the loan. Attachments, transport and fitting costs can often be wrapped into the facility too, depending on the lender. The GST and tax treatment depends on the structure and your circumstances, so confirm it with your accountant before settling on the setup.
What term should equipment finance run?
Matched to the asset's working life and your trade cycle. A facility that finishes well before the machine stops earning leaves you with a paid-off asset; a term that runs past the asset's useful life leaves you paying for something you have replaced. Lenders also look at the asset's age at the END of the term, which is why older machines get shorter terms. The balloon belongs in the same decision: sized so that the machine's realistic end-of-term value still supports paying it out or refinancing it.