Chattel Mortgage (Repayment) Calculator 2025

How to use our chattel mortgage repayment calculator

It’s easy to calculate your chattel mortgage using just a few key pieces of information. Even if you haven’t applied for a loan yet, you can still get an idea of what your repayments will be using an indicative interest rate.

You can also factor in establishment fees and an optional balloon payment to accurately estimate your total finance costs. You’ll also see breakdown of interest payable over the loan term.

Loan details you'll need to enter

Chattel mortgage amount

The amount of money you’re borrowing under the chattel mortgage agreement. This is usually the same as the value of the vehicle or asset you’re buying, unless you’re contributing a deposit or borrowing additional funds to cover other costs. According to Money.com.au data, the average chattel mortgage is $64,513 for vehicles and $175,589 for machinery or equipment.

Interest rate and loan term

This is the fixed interest rate the lender will apply to your chattel mortgage. Your chattel mortgage rate will depend on your business risk profile, plus the length of your chattel mortgage (i.e. how long it will take to repay the loan).

Establishment fees

Any upfront fees charged by the lender when establishing your finance agreement. Keep in mind that lenders may also charge ongoing fees (e.g. monthly account keeping fees).

Balloon payment

Chattel mortgage agreements often come with a balloon payment option — usually calculated as a percentage of the total loan amount.

Why working out your repayments matters

Money's asset finance expert, Phil Collard

Phil Collard, Money.com.au Asset Finance Expert

"All borrowers should ask themselves, what is my business comfortable paying per week, per fortnight, per month in terms of repayments? That then dictates most other decisions about your finance. There's no point in you doing a longer loan term to get lower regular payments than you can afford if you plan on paying it out in the first third of the loan period. It's just going to hurt you on the back end with extra interest or break costs."

Phil Collard, Money.com.au Asset Finance Expert

Chattel mortgage repayment calculation explained

Our chattel mortgage calculator uses an amortisation calculation method. This provides an accurate estimate of your repayments based on your loan amount, annual interest rate and loan term.

Your chattel mortgage is set up with a fixed rate and term. Your repayments will cover both the interest on your loan, and the principal amount.

Initially, a greater portion of your repayments will go towards 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 reducing the principal amount, as the interest costs reduce.

The simple formula for calculating chattel mortgage repayments is: loan amount / discount factor. The discount factor 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.

Chattel mortgage repayments calculation example

In the example below, we’ll use a $50,000 loan at a 12% interest rate, repaid monthly over five years without a balloon payment attached to the loan:

Calculate the number of repayments for the loan period: Divide the annual interest rate (12%) by the number of repayment periods per year (12). In this case, 12 repayments over five years = 60 repayments over the loan term.

Calculate the interest rate for the period: Divide the annual interest rate (12%) by the number of annual payments (12) = 1%. Then, convert it into a decimal representation = 0.01.

Calculate the discount factor: Use the decimal figure above to calculate the discount factor: ((((1+0.01)^60) - 1) / (0.01(1+0.01)^60) = 44.9551.

Calculate your monthly repayment amount: Divide the loan amount ($50,000) by the discount factor to find the monthly repayment amount: 50,000 / 44.9551= $1112.2208.

Get your estimated repayment amount: Round this figure to a double-digit decimal amount. Your monthly repayments on this loan would be $1,112.22.

Compare your options: Chattel mortgage Vs a Lease Vs Hire Purchase

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Chattel mortgage FAQs

Can I make extra payments on a chattel mortgage?

Yes, you can generally make extra repayments or pay off your chattel mortgage early, but early termination fees may apply. According to Great Southern Bank, early payout fees may be calculated on the remaining unpaid interest.

What is a balloon payment on a chattel mortgage?

A balloon payment is a residual lump sum due at the end of the loan term to pay the remaining loan balance. The balloon payment can range from 20-40% of your loan amount, depending on your agreement with the lender.

If your chattel loan includes a balloon payment, you will have two choices at the end of the loan term:

Pay the balloon amount in full, resulting in paying off your loan

Refinance the residual amount into another loan

What factors impact my chattel mortgage repayments?

Several factors can impact your repayments on a chattel mortgage. These include:

The size of your loan: The more you borrow, the larger your repayments will be (including interest).

Your interest rate: The lower your rate, the lower your repayments.

Fees or charges associated with the loan: Fees can impact the overall cost of your finance. For example, a $15 monthly account keeping fee would add an extra $900 to your chattel mortgage costs over a five-year term.

Your deposit amount or trade-in (if applicable): Trading in a previous vehicle or business asset or contributing a deposit to the finance will result in borrowing a reduced amount, thereby lowering your repayments.

Your balloon payment (if applicable): Opting for a balloon payment will reduce your regular repayments, but it means you’ll owe a larger sum at the end of the chattel mortgage term. It also means you’ll pay more interest overall.

How does the loan term impact my chattel mortgage repayments?

Choosing a longer loan term will result in lower monthly repayments but higher overall interest costs. On the other hand, a shorter loan term has higher monthly repayments but lower overall interest costs.

For example, if you borrow $50,000 at a rate of 12% p.a., your monthly repayments would be $1,112.22 over a five-year period and $977.51 over a six-year period.

How does a deposit or trade-in affect my chattel mortgage repayments?

The larger your deposit or trade-in, the smaller your loan amount, resulting in lower monthly repayments.

For instance, if you provide a $10,000 deposit towards a $50,000 chattel loan (effectively reducing your loan amount to $40,000) over five years, your repayments would be $889.78 instead of $1,112.22 (if you had no deposit).

Chattel Mortgage repayment calculator

Chattel Mortgage Calculator

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