Asset & Equipment Finance calculator

Chattel mortgage and hire purchase work like loans: you own the asset and claim interest and depreciation. Finance lease is a rental with a residual at the end and GST on each rental. The best choice depends on cashflow, GST/BAS method and tax objectives. Ask your accountant.

Balloon (loan) and residual (lease) levels reflect expected end-value and lender policy. Higher balloons cut repayments but leave more due at term end. Leases may follow ATO residual guidelines by asset life. Pick a level you can comfortably clear or refinance when the time comes.

For chattel mortgage or hire purchase, interest is generally deductible and you claim depreciation. For finance leases, rentals are usually deductible as an expense. Actual outcomes depend on business use, entity and accounting method. Confirm with your accountant for your circumstances.

If GST-registered, chattel/HP typically allow an upfront GST credit on the asset price (subject to eligibility). Finance leases attract GST on each rental and on the residual when paid. Timing varies with cash versus accrual BAS methods. Always confirm your position with your accountant.

Enter the nominal annual rate quoted by your lender. This tool also shows an effective annual cost (IRR) that folds in fees and any balloon/residual for like-for-like comparison. It’s not a government-mandated comparison rate, but it’s useful for assessing true cost across options.

Most facilities allow early payout. You’ll usually pay the balance plus any fees and, for leases, consider residual terms. Payout quotes can differ slightly from schedule figures because interest is recalculated daily. Request a formal payout letter before making a decision to exit early.

Yes. A larger deposit reduces the amount financed, lowering repayments and total interest. Balance that against working-capital needs. Use the calculator to test deposit versus balloon settings, review total paid over the term, and consider your cashflow seasonality before committing to a structure.

Often, yes. Capitalising establishment fees preserves cash upfront and slightly increases repayments. Some fees may include GST (especially with leases). The calculator shows both approaches; your contract and tax advice determine actual BAS treatment and deductibility in your specific situation.

If you’re not GST-registered, you generally can’t claim GST credits. The tool suppresses GST credits and shows totals ex-GST for comparability. That may change the cashflow calculus between lease and loan, since the upfront asset GST credit won’t apply. Seek tailored professional advice.

No. It’s a planning tool for indicative repayments, totals and GST handling. Tax outcomes vary by entity type, usage, BAS method and current legislation. Your lender’s contract will govern exact figures. Always obtain tailored advice from your accountant and broker before you proceed.