Total principal paid: --
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Our equipment finance calculator allows you to see how much your repayments and total costs will be on an equipment loan, based on the finance amount, term and interest rate. You can also factor in establishment fees and an optional balloon payment to get an accurate estimate of your overall finance costs.
To use the equipment finance calculator, you’ll need to enter the following details about your loan:
Once you have filled in your equipment finance 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.
|Equipment finance loan amount||Repayments (5% interest)||Repayments (7.5% interest)||Repayments (10% interest)|
Lenders calculate equipment finance repayments based on the loan amount, interest rate and loan duration.
They will calculate your interest rate based on how risky you appear as a borrower, factoring in your credit score, the purpose of the loan, how long your business has been operating, its revenue and other aspects of your business finances.
If you want to quickly calculate your repayments, our free equipment finance calculator above will do the hard work for you. But if you want to understand how the calculation works, here is an example based on a hypothetical loan.
In the example below, we’ll use a $50,000 loan at a 12% interest rate, repaid monthly over 7 years without a balloon payment attached to the loan:
You will qualify for equipment finance with the majority of Australian lenders if you operate a business which has been trading for at least 12 months, have an Australian Business Number and are registered for GST. You can still qualify for equipment finance if you are self-employed, a sole trader, or your business has been operating for less than 12 months, however you may be required to provide extensive documentation to prove your ability to repay the loan.
Equipment finance interest rates start as low as 4.49% for a commercial hire purchase or finance lease, while an unsecured business loan will have interest rates that start at 9.90%. The best equipment finance interest rates will be offered to secure, stable businesses applying for a secured form of equipment finance. Borrowers with a good credit rating also generally qualify for the best rates.
A balloon payment is a percentage of your loan amount which is not factored into your monthly repayments. If you apply for an equipment finance loan that includes a balloon payment, you will have two choices at the end of the loan term: you can either pay the balloon amount in full, or discuss with your lender about financing the residual amount into another loan.
You won’t need to put down a deposit on equipment finance if you own a home. In fact, you won’t need to provide a deposit at all if you are comfortable with the approval process taking a little longer. If you wish to fast-track your application through a streamlined equipment finance application and are renting a home, you will need to provide a 20% deposit on the assets you wish to finance.
Business Loan guides and resources
Learn more about your business finance options and how to get the funding you need to grow your business.