Your scenario
Adjust the inputs to see how monthly repayment, total interest and total cost change. Calculations are live.
Result
How this calculator works
The calculator uses the standard reducing‑balance amortisation formula used by Australian asset finance lenders:
M = (P − B · (1 + r)−n) · r / (1 − (1 + r)−n)
- M = monthly repayment
- P = amount financed
- B = balloon (a lump sum due at end of term)
- r = monthly rate (annual rate ÷ 12)
- n = total number of monthly repayments
The balloon is excluded from the amortising schedule — it sits at the end and must be paid, refinanced or cleared via sale/trade.
What changes the result in real life
- Fees. Establishment ($395–$795), documentation ($0–$395), PPSR ($6–$25), monthly admin ($0–$15). Add these for a true all‑in cost.
- Comparison vs flat rate. If your broker quotes a "flat rate", the true APR is usually 80–100% higher. Use our Flat Rate to APR Converter.
- Deposit / trade‑in. Reduces the amount financed and the monthly repayment.
- Tax effects. Interest and depreciation may be deductible — reducing after‑tax cost. Speak with your accountant.
- End‑of‑term plan. If you plan to refinance the balloon, factor in the rate environment at that future date.
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Frequently asked questions
Is the result a quote?
No. It is an estimate built on the rate, term and balloon you've entered. Real lender quotes depend on a full credit assessment of you, the asset and the documentation. Use the estimate to compare scenarios, then get formal quotes.
Does it include GST?
No. We assume the amount financed is GST‑exclusive (the typical convention for business asset finance). GST on the asset purchase is typically claimed up front for chattel mortgage under standard ATO rules — speak with your accountant.
Does it include fees?
No. Establishment, documentation, PPSR, monthly admin and direct debit fees are excluded. When comparing real quotes, ask for an all‑in comparison‑style rate that includes mandatory fees.
What's a sensible balloon?
The right balloon matches what you can realistically pay or refinance at the end of the term. Common caps: 30% on new utes/vans, 25% on trucks, 20% on machinery, less on older assets. A higher balloon reduces monthly repayments but increases total interest and creates an end‑of‑term cash requirement.
Why is my monthly repayment so different from a flat‑rate quote?
Flat rates calculate interest on the original balance every month, which understates the effective cost dramatically. A 6% flat rate over 5 years can equate to roughly 11–12% on a reducing‑balance APR basis. Use our Flat Rate to APR Converter to translate quotes onto the same basis.
Turn your scenario into a real quote
Now you've modelled your scenario, the next step is a real quote. Our editorial team can introduce you to an accredited Australian asset finance broker from our partner panel who can convert the model into a formal quote against your specific application.