Finance Lab
Equipment finance cost (chattel mortgage or hire purchase)
See the monthly repayment, the total interest and the real cost of financing a vehicle or piece of equipment.
The amount financed is the price less the deposit plus any fees. Monthly repayment is the amortising payment over the term, with the residual or balloon repaid at the end. Total cost = repayments + residual − price.
Step 1 · Enter your figures
Every box starts with an example figure. Replace each one with your own — the result updates as you type. Nothing you type is sent anywhere or stored.
The purchase price, excluding GST if you claim the GST credit.
Cash you put in up front.
Establishment and documentation fees financed rather than paid up front.
The annual rate quoted by the financier.
Length of the facility in years.
Amount owing at the end of the term.
Step 2 · Read the result
Monthly repayment
$977
- Amount financed
- $55,500
- Total interest and fees paid
- $15,148
- Total paid over the term
- $75,648Deposit, every repayment and the residual added together.
- Residual owing at the end
- $12,000Payable, refinanced or cleared by selling the asset.
- Amount financed$55,500
- Total interest and fees paid$15,148
- Total paid over the term$75,648
- Residual owing at the end$12,000
What this answer rests on (10)
- Price of the asset$60,000
You entered this
The purchase price, excluding GST if you claim the GST credit.
- Deposit paid$5,000
You entered this
Cash you put in up front.
- Fees added to the loan$500
You entered this
Establishment and documentation fees financed rather than paid up front.
- Interest rate8.5%
You entered this
The annual rate quoted by the financier.
- Term5.0 years
You entered this
Length of the facility in years.
- Residual or balloon$12,000
You entered this
Amount owing at the end of the term.
- The rate you entered is the one applied. No rate, threshold or statutory figure is supplied by the platform — confirm it from the current published source before you rely on the result.
The calculator applied this
- Repayments are monthly in arrears at a fixed rate for the whole term.
The calculator applied this
- GST, registration, insurance and running costs are excluded unless you included them in the price.
The calculator applied this
- No tax deduction or depreciation benefit is applied here — use the write-off calculator for that.
The calculator applied this
Want to keep this? Save it against a project in your workspace.
Save to my workspaceWhat this means for you
The monthly commitment, the total interest and the lump sum still owing when the term ends.
How to read it
- The residual keeps the monthly payment low but you still owe it — plan for how it gets cleared.
- Total interest against the amount financed is the true price of not paying cash.
- Move the deposit and the residual to see which one your cash flow can actually carry.
Watch out for
- A residual larger than the asset will be worth at the end. You then pay to get out of it.
- Fees rolled into the loan, which you then pay interest on for the whole term.
- Comparing a quoted flat rate with an amortising rate. They are not the same number.
Assumptions behind this result
- The rate you entered is the one applied. No rate, threshold or statutory figure is supplied by the platform — confirm it from the current published source before you rely on the result.
- Repayments are monthly in arrears at a fixed rate for the whole term.
- GST, registration, insurance and running costs are excluded unless you included them in the price.
- No tax deduction or depreciation benefit is applied here — use the write-off calculator for that.
General information only. This calculator does not take your circumstances into account and is not financial, tax, legal or investment advice. Confirm every rate, threshold and figure with your own adviser before acting.
Related calculators
Other tools in funding and finance.
Take this further
Members run this calculator on their own recorded figures, save the workings to their workspace, export them to Word or Excel, and read the lessons that teach the thinking behind the result.