Calculator
Commercial finance calculator
Estimate repayments on utes, trucks, vans and commercial vehicles. Adjust the loan amount and structure to match your business cash flow.
Get a quote for this amount6.50% p.a. is a starting point for estimating repayments only. It is not a quote, not an offer of finance, and not a rate available to every applicant. Your actual rate depends on the lender, the asset, the loan term, the loan amount and your circumstances. Adjust to model scenarios.
Monthly repayment
$587
Weekly
$135
Fortnightly
$271
Total repaid
$35,219
Estimates only. Your actual rate depends on your credit profile, lender and loan structure. Results are indicative only.
Comparison rate or interest rate: which one to compare
Assumptions
- A fixed interest rate applying for the full loan term.
- Repayments made in arrears at the end of each period.
- Lender fees, establishment costs and the interest effect of a balloon are excluded unless shown above.
- Weekly and fortnightly figures are the monthly repayment converted across the year, not a separate repayment schedule a lender has agreed to.
- These are estimates only and are not an offer of finance.
- 6.50% p.a. is a starting point for estimating repayments only. It is not a quote, not an offer of finance, and not a rate available to every applicant. Your actual rate depends on the lender, the asset, the loan term, the loan amount and your circumstances.
How the commercial loan calculation works
The calculator applies the standard amortising formula to the amount borrowed less any balloon, spread across the months of your term at the rate you enter. Each repayment covers accrued interest first, with the balance reducing the principal.
Commercial finance is usually written as a chattel mortgage, finance lease or commercial hire purchase. The repayment arithmetic is the same across them. What differs is who owns the asset during the term and how GST and depreciation are treated, which is a conversation for your accountant.
What shapes the rate band you are offered
Lenders assess the business and the asset together. Trading history, ABN and GST registration age, the strength of your financials or the alternative documentation supporting a low-doc application, and the director's personal credit all feed the decision.
The asset matters too. Vehicle or equipment type, age, and how readily it could be resold all count. Well-known assets with active secondhand markets sit in easier lanes than specialised plant. Where your business lands is a matter for comparison across the panel rather than a published figure.
How a balloon payment changes the numbers
A balloon, sometimes called a residual, defers part of the principal to the end of the term. It lowers the regular repayment, which can help cash flow, while increasing the total repaid because interest accrues on the deferred amount throughout.
Balloons are common in commercial finance because they let the repayment track the period the asset genuinely earns. Set the balloon against a realistic view of what the asset will be worth at term end, not the largest figure the lender will allow.
Choosing a loan term
Match the term to the working life of the asset. A term that outlives the vehicle or equipment leaves the business paying for something it has already replaced, and a term that is too short starves cash flow while the asset is still earning.
Longer terms lower the repayment and raise total interest, while shorter terms do the opposite and usually improve the rate band. The right answer is the one that keeps the repayment comfortable across a normal trading cycle, including the slower months.
Understanding your numbers
How repayments are calculated
Your repayment is determined by the loan principal, the interest rate and the loan term. A balloon payment reduces monthly repayments but leaves a lump sum owing at the end.
Commercial vehicle finance can be structured as a chattel mortgage, finance lease or hire purchase depending on your business needs and tax position.
A chattel mortgage is commonly used by businesses registered for GST, allowing potential input tax credit claims. Speak with your accountant to confirm what suits your situation.
Loan terms typically run 2 to 5 years for commercial vehicles, with 1 to 7 years available depending on lender and asset.
Your actual rate depends on business financials, ABN history, the vehicle and whether it is registered for business use.
Rate factors
What affects your interest rate?
ABN and business history
Lenders start with the entity, not the vehicle. How long the ABN has been registered and how long the business has traded both shape which lenders will look at the application. A newly registered ABN is not a barrier, but it is assessed on a different footing and asks for more supporting information. Business vehicle finance and your ABN covers what is asked for.
Business revenue and financials
Beyond the ABN, lenders want to see that the business can service the repayment. Full-doc applications are assessed on tax returns and financial statements, and low-doc applications on self-declared income, sometimes supported by bank statements or BAS, where a lender offers that option. Which path suits you depends on what your accountant has finalised and when. Low-doc commercial finance requirements lists what each one asks for.
New vs used vehicle
For a work vehicle, whether it is new or used changes the paperwork more than the principle. A dealer sale brings an invoice, a build date and a valuation a lender can accept at face value. A private sale asks you to evidence the same things, and the odometer and condition carry more weight. Confirming a lender's position before you commit saves arranging finance twice.
Vehicle type (ute, van, truck)
Not every commercial vehicle is assessed the same way. A dual-cab ute is straightforward for most lenders, while vans, prime movers, tippers and specialised bodies are judged on how they are used, how they hold value and how readily they can be resold. Vehicles built for a single purpose narrow the pool toward lenders who understand that market. Ute finance for tradies covers the most common case.
Loan structure selected
Chattel mortgage, finance lease and hire purchase are different structures. They differ in who owns the vehicle during the term, how GST is treated and how the repayments appear in your accounts. Which one suits depends on your entity, your accounting and what you plan to do with the vehicle at the end. Chattel mortgage vs lease vs hire purchase compares them, and the choice is worth a word with your accountant.
Loan term
On a commercial vehicle the term is usually set against how long the vehicle will earn, not just what the repayment looks like. Lenders cap how old a vehicle can be when the loan ends, which narrows the term on an older truck or ute. A balloon or residual, common on commercial vehicles, leaves an agreed amount owing at the end and changes the repayment and the total interest again.
Next step
Ready to see real numbers?
The calculator gives you a starting point. A broker compares lenders to find a rate and structure that suits your situation. Takes two minutes.
Step 1 of 3
What are you financing?
Select a finance type and tell us your loan amount.
Common questions