How to use our equipment finance calculator
Our equipment finance calculator lets you see how much your repayments and total interest costs will be on an equipment loan, based on your finance amount, loan term and interest rate.
You can also factor in establishment fees and an optional balloon payment to estimate your overall finance costs accurately. Additionally, you’ll be able to see a breakdown of interest and loan principal over the term of the equipment loan.
Loan details you'll need to enter
Loan amount
The amount of money you’ll be borrowing with the equipment finance. This is usually the same as the value of the business asset you’re buying, unless you’re contributing a deposit or borrowing additional funds to cover other costs.
Interest rate and loan term
This is the fixed interest rate the lender will apply to your equipment loan, as well as the length of your equipment finance agreement (i.e. how long it will take to repay the loan).
Establishment fees
Any upfront fees the lender charges when establishing the equipment finance agreement. Factoring this in will allow you to see the total cost of your equipment finance.
Balloon payment
With a balloon payment, you will have reduced regular repayments but a large residual payment at the end of the equipment finance term. The balloon payment amount is usually calculated as a percentage of the total loan amount. Balloon payments are commonly used when purchasing a vehicle through equipment finance, such as a chattel mortgage.
How are equipment finance repayments calculated?
Your equipment finance repayments will be based on your loan amount, interest rate and loan duration.
Lenders usually calculate interest based on the current balance of the loan each day (also known as your daily interest charge). Then, they add up the interest for each day in the current month and add it to the loan balance monthly. This is why making extra repayments to lower your balance can save you money in interest over time.
If you want to quickly calculate your repayments, our free equipment finance calculator above will do the hard work for you.
Why calculating your equipment finance first is a good idea
Using an equipment finance calculator helps you understand what the impact of the finance will be on your cashflow. It’s one thing acquiring a new piece of equipment to help boost revenue, but if the cashflow impact is not worth the return, it’s better to understand that before you proceed with the finance.
It might be that based on the regular repayments, you ultimately decide on a lower cost asset to reduce the hit to cashflow. Or it could even be that you discover you have a buffer to invest in a higher-quality asset. You won’t know until you do the sums.

Phil Collard, Asset Finance Expert
“I think a question that all borrowers should think of is, 'what is my business comfortably able to afford per week, per fortnight, per month in repayments'? Work that out and bring that information to your broker so you ultimately end up with finance that will be sustainable for your business.”
Phil Collard, Asset Finance Expert
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