ATLAS / PLANNING TOOLS
Equipment finance calculator.
See how the amount, term and final balloon change your monthly repayments and total cost.
How much cash does the equipment need each month?
Use this asset and machinery finance calculator for the amount left to finance after your deposit. Add insurance, maintenance and operating costs to the repayment when planning your budget. A final balloon remains payable at the end; show how you would cover it rather than assuming the machine can be sold for that amount.
Plan savings towards a final balloonUnderstand the assumptions.
This calculator uses a constant nominal annual interest rate, monthly compounding and equal monthly payments at the end of each month. The fee shown is paid upfront, separately from the loan.
Any balloon is paid in addition to the last regular monthly payment. The result includes that balloon in total paid, and does not assume a resale value or future refinancing.
It excludes ongoing fees, changes in rate, taxes, variable payment schedules and lender-specific calculation conventions. Values are rounded for display, so an actual payment schedule may differ.
Worked example: the same $80,000 machine with and without a balloon.
Assume $80,000 financed after the deposit, five years, and an illustrative 10% p.a. The balloon case uses 30% of the amount financed, or $24,000, payable at the end of the term.
| No balloon | 30% balloon | |
|---|---|---|
| Monthly repayment | $1,700 | $1,390 |
| Final payment | $0 | $24,000 |
| Total interest | $21,986 | $27,388 |
| Total paid | $101,986 | $107,388 |
The balloon lowers the monthly repayment by about $310, which matters when a new excavator, truck or production line takes months to reach full utilisation. It also costs about $5,400 more in interest and leaves $24,000 to find in month 60. The balloon payment planner shows what to set aside each month so the final payment is funded rather than hoped for.
Deposit, GST and the purchase structure.
Deposit. Enter the amount actually financed, not the sticker price. A larger deposit lowers both the repayment and the interest, but it also removes cash from the business at the same time as the new machine starts costing money to run. Keep a reserve for insurance, registration, transport and the first service.
GST. Most business equipment purchases include GST. Depending on the structure, the GST component may be financed and later claimed as a credit on a BAS, or paid upfront. Timing matters for cash flow, so ask your accountant how the purchase will be treated before settling on the amount to finance.
Structure. A chattel mortgage, a finance lease and a commercial hire purchase can produce similar repayments and very different ownership, tax and end-of-term positions. The equipment loan versus leasing guide sets out the questions to ask, and the used equipment page covers private sales and inspections.
Calculator questions
Does a balloon reduce total interest?
Generally, deferring principal leaves a higher balance outstanding for longer. A balloon can lower regular payments while increasing total interest compared with an otherwise equivalent fully amortising loan.
Does this calculate what I can borrow?
No. It calculates repayments for the values you enter. It does not assess income, expenses, credit history or eligibility.
Why might a lender quote differ?
Fees, payment timing, interest conventions and rounding may differ. Confirm the actual repayment schedule and full terms with the provider.
What is a typical balloon payment on equipment finance?
Balloons are commonly set as a percentage of the amount financed and vary with the asset type, its expected resale value, the term and the lender’s policy. There is no standard figure. Enter the balloon from a written proposal, and check whether it is expressed as a percentage of the purchase price or of the amount financed.
Should I include the deposit in the amount?
No. Enter the amount you will finance after the deposit. If you want to see the effect of a larger or smaller deposit, change the amount financed and compare the repayment and total interest.
Do the repayments include GST?
The calculator works with whatever amount you enter. If the amount financed includes GST, the repayments cover it. Whether and when the GST can be claimed back depends on the finance structure and your registration, so confirm the treatment with your accountant.
Can I finance a second-hand machine?
Often, yes, subject to the lender’s policy on the asset’s age, condition and the seller. Private-sale purchases usually need extra checks such as an inspection, proof of ownership and a search of the Personal Property Securities Register. See the used equipment page for the list.