Calculator · equipment finance
Run a chattel mortgage with balloon.
Set price, deposit, rate, term, and balloon. Monthly cost, total interest, balloon, and the claimable GST component recalculate live.
Inputs and result
Chattel mortgage with optional balloon.
Default structure for ABN holders. The financed principal amortises across the term down to the balloon; you pay or refinance the balloon at end-of-term.
Vehicle, equipment, fitout, machinery. Price typically inclusive of GST when paid via chattel mortgage.
Reduces the financed principal. Many chattel mortgages settle with no deposit.
Bank chattel mortgage 6 to 9%. Specialist non-bank 7 to 12%. Pricing varies by asset, age, and your business profile.
Most asset finance runs 3 to 7 years. Match to expected useful life.
Balloon reduces monthly cost; you pay or refinance the residual at end-of-term. 25 to 30% common on vehicles.
Indicative result
- Financed principal$80,000
- Monthly repayment$1,216.58
- Balloon at end of term$20,000
- Total interest$12,995
- Total cost over the term$92,995
- GST component (claimable)$7,273
Indicative only. Specific pricing depends on asset, lender, and your tax setup. GST shown is the 1/11 component of a GST-inclusive price; chattel mortgage usually allows the GST claim upfront in the next BAS.
How balloon works
Lower monthly cost, settled at end-of-term.
A balloon defers a portion of the loan principal to a single end-of-term payment. Setting a 25% balloon on a $80K loan means $20K is deferred to the end; the monthly payments amortise only the remaining $60K plus interest on the full balance. Monthly cost falls; total interest rises slightly because more principal accrues interest for longer.
At end-of-term you have three options: refinance the balloon (often into the next asset), trade the asset in (using the residual to fund the next), or pay it out and own the asset outright. Plan the balloon size around an honest expectation of asset value at end-of-term; setting it higher than the expected resale value sets up an unwelcome surprise.
The GST shown on the result is the 1/11 component of a GST-inclusive price. Under a chattel mortgage you generally claim this in the BAS period the asset is acquired, regardless of how long the loan term runs. Speak to your accountant about your specific timing.
Once the structure looks right
Twenty-minute brief on the asset and tax setup.
Walk us through the asset and what you've modelled. We'll come back with two specialist asset financiers offering real pricing for your profile.