Enter the amount financed, the rate, the term and any balloon, and this works out the payment and what the contract costs in total.
The balloon is an input because the financier sets it. It is not a figure this calculator estimates.
Works out the payment, total cost and interest on a chattel mortgage for a vehicle or item of equipment, including a balloon or residual where the contract has one.
Amount financed
The purchase price less any deposit or trade-in, plus anything financed alongside it. Not the sticker price.
Balloon or residual
The lump sum owing at the end of the term. A larger balloon lowers the payment and raises the total cost, because you are paying interest on money you have not repaid.
The payment is the headline, but the total paid over the contract is the figure that decides whether the deal is good. A balloon makes the first look better and the second worse.
The amount owing halfway through is worth checking against what the asset will be worth then. Equipment that depreciates faster than the loan amortises leaves you unable to sell without finding cash.
The balloon as a share of the amount financed puts the risk in proportion. A large share means a large decision falling due at the end of the term, usually refinancing it.
Every figure below is computed by the same calculator on this page, from the inputs described. Nothing here is typed in by hand, so an example cannot disagree with the tool.
The contract clears in full and the total paid is the amount financed plus the interest. This is the baseline every balloon should be compared against.
A lower payment and a higher total. The balloon is not a saving — it is a deferral, and the interest on the deferred amount is the price of it.
The payment amortises the amount financed down to the balloon rather than to zero. The balloon is discounted back to today and the payment clears what remains over the term.
With no balloon the calculation reduces exactly to an ordinary loan repayment, which is a property the engine tests rather than assumes.
A fixed rate for the term
Asset finance is usually fixed, which makes this arithmetic reliable in a way variable home loan projections are not.
No fees
Establishment, account and early termination fees are excluded and vary by financier. They can be a meaningful share of the cost on a small contract.
Nothing about tax
Whether payments are deductible, whether GST is claimable up front, and how the balancing adjustment works on disposal depend on the entity, its registration and the use of the asset. None is modelled.
Not a quote
Rates on asset finance vary widely with the asset, its age and the borrower. The figure here is arithmetic on the rate you entered.
The balloon has to be dealt with
At the end of the term the balloon falls due. Refinancing it is common and costs more interest; selling the asset to cover it depends on what it is then worth.
Works out the payment and total cost of an equipment or vehicle lease over its term, including anything paid up front and the residual owing at the end.
Solves for the additional facility a business cashflow supports at a debt service coverage ratio you set, after existing commitments.
Compares two home loans on repayment, total interest and total cost, so the difference between them is explicit.
This calculator can be embedded on a business website, branded to match it, with a call to action that sends the enquiry to that business rather than collecting anything here.