Equipment Finance Calculator: Repayments With or Without a Balloon

How are equipment finance repayments calculated?

An equipment loan repayment is the amount financed, less the present value of any balloon, amortised over the term at the interest rate and paid in arrears, at the end of each period.

Monthly repayment = (amount financed − balloon ÷ (1 + r)ⁿ) × r ÷ (1 − (1 + r)⁻ⁿ), where r is the annual rate ÷ 12 and n is the number of months.

This is the standard amortisation formula, the same one set out in the Reserve Bank of Australia's Research Discussion Paper 2021-10, Appendix A, with the balloon added as an amount left owing at the end. The calculator assumes:

• Repayments are made in arrears, at the end of each month.
• Monthly is the base figure; weekly is the monthly repayment × 12 ÷ 52 and fortnightly × 12 ÷ 26.
• The balloon is a percentage of the equipment price, paid in one amount at the end of the term.
• Fees, insurance, freight and installation are not included unless you add them to the price.
• GST sits inside the price you enter and is financed with it; the GST credit line is shown for information only and does not reduce the repayment.

The same maths covers a machine, a fitout or a fleet of tools; what changes between them is the deposit, the balloon and the rate a lender will offer. If the term is new to you, our glossary sets out what equipment finance covers.

Which rate should you enter?

Enter the rate you have been quoted; the 8.49 per cent example rate is a planning figure as at 27 September 2026, not an offer. Equipment rates move with the strength of the file, the age and type of the equipment, the deposit and whether the loan is full doc or low doc, which the equipment finance guide explains under what equipment finance costs in 2026.

What does $50,000, $100,000 or $250,000 of equipment cost per month?

At the 8.49 per cent example rate over 60 months with no balloon, $50,000 of equipment costs about $1,026 a month, $100,000 about $2,051 and $250,000 about $5,128. The table shows the same three amounts across common terms, and at 60 months with a 20 per cent balloon.

Sources: formula from RBA Research Discussion Paper 2021-10, Appendix A (rba.gov.au, November 2021, read 27 September 2026). The 8.49 per cent example rate is an indicative practitioner figure as at 27 September 2026, not a quote. Monthly repayments in arrears on the amount financed with no deposit, rounded to the dollar; a 20 per cent balloon is 20 per cent of the price, left owing in one amount at the end of the term.

A longer term or a balloon lowers the instalment and raises the total interest: $100,000 over 60 months costs about $23,070 in interest with no balloon and about $26,946 with a 20 per cent balloon, and the balloon payment itself still has to be paid or refinanced at the end. For how we place equipment, vehicle and machinery deals, see our asset finance broker page.

How do asset type and age change the deposit?

New equipment from a dealer can often be financed to the full invoice with no deposit, while used, privately bought or specialised equipment usually needs a deposit that grows as the asset gets older.

Enter that deposit in the calculator and the per cent financed line under the result shows how much of the price you are borrowing. The full band table, including vehicles and trucks, sits in our explainer on LVR in asset finance, and the age limits and common declines on older gear are covered in the guide to used and aged equipment finance.

Which structure does this calculator model?

It models a chattel mortgage, the usual structure when a business wants to own the equipment: you own it from the start, the lender holds security over it, repayments are made in arrears and any balloon is owed at the end.

A finance lease ends with a residual instead of a balloon and the lender owns the equipment during the term, while a rental usually leaves nothing to pay out and nothing to keep at the end. Treat the result as a guide only for those structures, because their payments and tax treatment are set differently.

Which structure fits your business is covered in the equipment guide's comparison of chattel mortgage, finance lease, hire purchase and rental, and in our note on lease, rental, chattel and hire purchase for manufacturing equipment. Ownership and security under the default structure are explained in the chattel mortgage guide.

Does the GST credit or the write-off change the repayment?

No. The repayment is worked out on the amount financed, so the GST credit and the instant asset write-off change your tax position, not the instalment the lender charges.

The calculator's GST credit line is the price divided by 11, shown as general information for a business registered for GST buying at a GST-inclusive price. When the credit reaches you depends on your GST accounting and the structure, so confirm it with your accountant rather than relying on it to meet the early repayments.

From 1 July 2026, small businesses with an aggregated turnover of less than $10 million can deduct the full cost of eligible depreciating assets costing less than $20,000, and the ATO says the measure is now law (ATO, QC72501, last updated 27 August 2026, read 27 September 2026). Equipment costing $20,000 or more falls outside it; how that equipment is claimed instead is set out in the guide's section on how GST and tax work under each structure.