Chattel Mortgage Calculator
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Loan Amount: $30,000
Establishment Fee: --
Total Interest Paid: --
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| YEAR | REMAINING BALANCE | REPAYMENT | INTEREST PAID | ENDING BALANCE |
|---|---|---|---|---|
-- | -- | -- | -- | -- |
How to use the chattel mortgage repayment calculator
Our chattel mortgage repayment calculator lets you see what you’ll be paying back weekly, fortnightly or monthly on a chattel mortgage based on the loan amount, interest rate and term. You can also include loan establishment fees so you get an accurate overall cost, and you can see what impact a balloon payment would have on your loan.
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 borrowing under the chattel mortgage agreement.
Interest rate: This is the fixed interest rate on your chattel mortgage applied by the lender.
Balloon payment: A balloon payment is usually represented as a percentage of the total loan amount. It will result in a reduced regular repayment amount and 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 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 as well as your overall chattel mortgage cost.
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. Calculating your repayments can be useful if you're comparing a chattel mortgage to other finance options.
Chattel mortgage repayment formula
The chattel mortgage calculator uses what’s called an amortisation calculation. This provides an accurate estimate of repayments based on the loan amount, the annual interest rate applied and the loan term.
A chattel mortgage is established for a fixed rate over a fixed term. Your repayments will need to cover both the interest on your loan, and the principal amount. This means when you first begin repaying your chattel mortgage, a greater portion of the repayments will go toward repaying the interest amount. This is simply because the loan balance is higher at the start and interest is charged as a percentage of the balance.
Over time, more of your repayments will go towards paying down the chattel mortgage principal as the interest costs reduce.
When expressed as a mathematical formula, the calculation can seem somewhat complex. But understanding it in detail is not strictly necessary as a chattel mortgage calculator will do the hard work for you.
The simple formula for calculating chattel mortgage repayments is: Loan amount / discount factor
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
Monthly chattel mortgage repayment examples
| Chattel mortgage amount | 5% interest | 7.5% interest | 10% interest |
|---|---|---|---|
$10,000 | $188.71 | $200.38 | $212.47 |
$20,000 | $377.42 | $400.76 | $424.94 |
$30,000 | $566.14 | $601.14 | $637.41 |
$40,000 | $754.85 | $801.52 | $849.88 |
$50,000 | $943.56 | $1,001.90 | $1,062.35 |
$60,000 | $1,132.27 | $1,202.28 | $1,274.82 |
$70,000 | $1,320.99 | $1,402.66 | $1,487.29 |
$80,000 | $1,509.70 | $1,603.04 | $1,699.76 |
$90,000 | $1,698.41 | $1,803.42 | $1,912.23 |
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 payment:
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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GET STARTEDGET STARTEDChattel mortgage calculator frequently asked questions
Get help from a real-life Money Matchmaker® from start to finish.
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 regulated in the same way as consumer finance, so lenders aren’t required to disclose information in the same way, including the fees that apply.
What is a balloon payment on a chattel mortgage?
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 final lump sum payment, which you will be required to either pay in full at the end of your loan term, or refinance into another loan.
What factors affect the repayment amount on a chattel mortgage?
The repayment amount on a chattel mortgage is influenced by several factors, including the loan amount, interest rate, loan term, and any fees or charges associated with the loan. The size of the deposit or trade-in (if any) also makes a difference, as does the size of the balloon payment if you choose that option.
How does the length of the loan term impact repayments?
The length of the loan term can significantly impact repayments on a chattel mortgage. Longer loan terms generally result in lower monthly repayments, but higher overall interest costs. Shorter loan terms result in higher monthly repayments but lower overall interest costs.
Can I change the loan term to adjust my repayments?
Most lenders will allow you to adjust the loan term on a chattel mortgage to suit your needs. By extending the loan term, you can reduce your monthly repayments, while shortening the loan term will increase your monthly repayments. If you make changes to the loan term midway through the loan, adjustment fees may apply
How does the size of the deposit or trade-in affect the chattel mortgage repayment amount?
The size of the deposit or trade-in can have a significant impact on the repayment amount on a chattel mortgage. The larger the deposit or trade-in, the lower the loan amount, and therefore, the lower the monthly repayments.
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