Calculator
Equipment finance calculator
Estimate repayments on machinery, tools, plant or business equipment. Preserve working capital and spread the cost over a term that suits your business.
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 equipment loan calculation works
The calculator uses the standard amortising formula, which spreads the amount borrowed, less any balloon, over the months of your term at the rate you enter. Each repayment settles the interest accrued since the last one and reduces the principal by the remainder.
Equipment finance is commonly structured as a chattel mortgage, with finance lease, operating lease and hire purchase available where a different shape suits the business. The repayment maths is identical across them. The difference lies in ownership during the term and the accounting treatment.
What shapes the rate band you are offered
Lenders assess three things together, the business, the borrower and the asset. Trading history, income evidence, existing commitments and director credit make up the first two. Full financials open more doors than alternative documentation, though low-doc commercial policy exists precisely for businesses whose paperwork lags their trading.
The asset carries real weight. Wheeled and tracked machinery with strong resale markets is straightforward, while specialised plant and soft assets such as software and fit-outs lean more heavily on the strength of the business. Which lenders want the deal is a placement question, and that is what a panel comparison answers.
How a balloon payment changes the numbers
A balloon defers part of the principal to the end of the term, lowering the regular repayment while increasing the total repaid, since interest accrues on the deferred portion for the full term.
On equipment the balloon should be set against a realistic residual value at term end. Machinery that holds value well can carry a larger balloon sensibly, while assets that age quickly, particularly technology, are usually better amortised in full.
Choosing a loan term
Set the term against the working life of the equipment. A loan that outlasts the machine means paying for something already retired, while a term that is too short pulls cash out of the business faster than the asset generates it.
Longer terms reduce the repayment and increase total interest. Shorter terms cost more each month and typically cost less overall. Where income is seasonal, ask about structuring repayments around the cash flow cycle rather than forcing an even monthly figure.
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.
Equipment finance allows a business to acquire assets without a large upfront outlay, preserving working capital for operations.
Finance structures include chattel mortgage, finance lease, hire purchase and operating lease, each with different ownership and accounting implications.
Terms typically run from 1 to 7 years for most equipment types. Speak with your accountant about the right structure before you apply.
Rates and lender appetite vary significantly by equipment type, age, condition and the business financial profile.
Rate factors
What affects your interest rate?
Business financials and ABN history
Lenders start with the entity. How long the ABN has been registered and what the business can show of its trading history both shape which lenders will look at the application. Full-doc applications are assessed on financial statements, and low-doc applications on self-declared income, sometimes supported by bank statements or BAS, where a lender offers it. Low-doc equipment finance lists what each path asks for.
Equipment type and condition
Lenders assess the equipment itself, not only the business behind it. Mainstream machinery from a known manufacturer is straightforward to value and resell, so it sits inside most lender policies. Specialised or purpose-built equipment is a narrower proposition that fewer lenders will finance. Condition, hours on the meter and service records all form part of the assessment. Machinery finance, new, used and private sale covers how each is treated.
New vs used asset
Dealer-supplied equipment arrives with an invoice, a build date and a valuation, which is the simplest case for a lender. Used machinery is judged on its age, its hours and how it is being sold. Auctions add a timing problem of their own, because payment usually falls due within days of the hammer. Financing used auction equipment covers what to arrange before you bid.
Loan structure selected
Equipment can be bought outright or financed through a chattel mortgage, lease, hire purchase or rental agreement. They differ in who owns the asset during the term, how GST is treated and how the repayments sit in your accounts. Which one suits depends on your entity and what you plan to do with the equipment at the end. Buy or finance business equipment works through the comparison, and the choice is worth a word with your accountant.
Asset age and expected life
Lenders look at how old the equipment will be at the end of the loan term, and how much working life it has left. Most set a maximum age at the end of the term, so older equipment can mean fewer options. How long a machine is expected to last also depends on the type. Something well maintained can have years of work left in it, while equipment that gets replaced by newer models quickly is assessed over a shorter timeframe.
Loan term
Equipment terms are set against how long the asset will keep earning, which is a different question from how long you would like to repay. Most lenders will not offer a term that runs past the point the equipment is still productive, so expected working life caps the options before your preference does. Equipment loan terms covers the range available and how to match a term to the asset.
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