Chattel Mortgage Calculator

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Total Interest Paid: --


How to use the Chattel Mortgage Payment Calculator

To use the chattel mortgage calculator, you’ll need to enter some details about your loan. These are explained below:

  • Loan Amount — The amount of money you will be taking out under a chattel mortgage agreement.
  • Interest Rate — This is the fixed interest rate the lender will apply to your chattel mortgage.
  • Balloon Payment— A balloon payment is often represented as a percentage of the total loan amount. It will result in a reduced regular repayment amount at the cost of a higher, final payment.
  • Establishment Fees — Any upfront fees charged by the lender when creating the chattel mortgage finance agreement. This will allow you to determine the full total amount of your chattel mortgage loan.
  • Loan Term — The length of your chattel mortgage as dictated by your loan agreement. The loan term is important as it will allow you to accurately calculate your monthly and weekly payments through an APR calculation.

Once you have filled in your chattel mortgage loan details, simply click ‘See My Repayments’ to view an estimated repayment amount. You can then select Monthly, Fortnightly, or Weekly repayments to see what your repayment amount will be at various frequencies.

Chattel Mortgage Repayment Formula

The chattel mortgage calculator uses what is called an amortisation calculation. This provides a more accurate representation of repayments based on the annual interest rate applied to your loan, dependent on the loan term.

A chattel mortgage is established for a fixed rate over a fixed term. However, your repayments will need to cover both the interest on your loan, and the principal amount. When you first begin repaying your chattel mortgage, a greater portion of the repayments will go toward repaying the interest amount. Over time, this will reduce as the amount put toward repaying your principal amount increases.

When expressed a mathematical formula, this calculation can seem somewhat complex. However, once you understand how interest is calculated on a loan amount over time, you should even be able to perform the calculations yourself.

The simple formula for calculating Loan Repayments is: Loan Amount / Discount Factor

However, the calculations become a little more complex when finding the discount factor, which is calculated by dividing the interest rate of your loan by the number of payments per year (12 for monthly, 26 for fortnightly, or 52 for weekly) to first obtain the Periodic Interest Rate.

The formula is expressed as: (((1 + i) ^n) - 1) / (i (1 + i)^n)

  • n = the number of repayments
  • i = the annual interest rate

Example of Monthly Chattel Mortgage Repayments

Chattel mortgage amount5% interest7.5% interest10% interest





































Chattel mortgage repayment examples are calculated using monthly repayments with a fixed interest rate on a 5-year term. They do not include a balloon amount, and do not account for any fees that may be charged by a lender in addition to interest.

Chattel Mortgage Example Calculation

In the example below, we’ll use a $30,000 loan at a 6% interest rate, repaid monthly over 5 years without a balloon applied:

  • n = 60 (12 repayments per year for 5 years)
  • i = 0.005 (where the interest rate (6%) is divided by the number of annual payments (12) to provide a decimal representation of the interest rate)
  • Using the discount factor formula above, we can calculate the discount factor: ((((1+.005)^60) - 1) / (0.005(1+.005)^60)) = 51.7255
  • The discount factor is then calculated as 51.7255
  • We then take our loan amount ($30,000) and apply the Loan Repayment Formula, dividing the loan amount by the discount factor. This will provide your monthly repayments: 30,000 / 51.7255 = 579.98
  • Your monthly repayments on this loan will be $579.88

If you want to quickly calculate your repayments without creating your own spreadsheet with the above calculations, you can use our free chattel mortgage calculator.

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Chattel Mortgage Calculator FAQs

How do you qualify for a Chattel Mortgage?

You can qualify for a chattel mortgage if you want to finance a vehicle which will be used for business purposes at least 51% of the time.

Can I make extra payments on a Chattel Mortgage?

Yes, but you should make sure there are no early termination or repayment fees before you agree to a chattel mortgage. A chattel mortgage is not dictated by the National Consumer Credit Protection (NCCP) Act, so lenders aren’t required to advertise all information as they would with a consumer loan.

What is a balloon payment?

A balloon payment is a percentage of your chattel mortgage loan amount which is not factored into your monthly repayments. Instead, the balloon amount acts as a residual payment, which you will be required to either pay in full at the end of your loan term, or refinance into another loan.

How do Chattel Mortgage GST benefits work?

A business using a chattel mortgage to acquire company vehicles can claim back the GST on the initial purchase price if it is registered for GST on a cash basis — i.e. the business records all business income and expenses as they happen. You can claim back the GST amount on your next Business Activity Statement (BAS).


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