4 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 10
- Your finance and insurance
- Where can we reach you?
- Done. We have your details.
- How is the repayment worked out?
- Why include insurance in the monthly cost?
- What does a balloon do to the numbers?
- Where does the 8.09% come from?
- Can you use it as a chattel mortgage calculator?
- Buying with a chattel mortgage?
- See a fixed premium for your machine
Your finance and insurance
Preview figures- Amount financed
- Finance repayment
- Insurance, per month
- Insurance paid upfront (incl. GST)
- Insurance paid by the month, in total
- Balloon due at the end
- Total interest
An illustration, not a loan offer. Repayments are monthly in arrears on the value less any deposit, plus any fees added to the loan; your lender’s rate, fees, GST treatment and payment timing will change the figures. The 8.09% starting rate is the RBA’s average fixed rate on new small business loans in August 2026, not an equipment finance quote. The insurance figure is an indication, not a quote or an offer of insurance. The monthly insurance figure is an estimate: paying by the month means an initial payment, then equal monthly payments, from 12.99% a year more (higher on shorter terms) plus a one-off admin fee. The exact amounts come with your indication.
Done. We have your details.
- NowYour indication and details reach our team, who pass them to our specialist insurance partner.
- Same business dayThe partner emails you an e-brochure for your consideration, with the policy wording.
- When you acceptAccept online, and your certificate of currency follows in about five minutes.
How is the repayment worked out?
The calculator uses the standard loan formula, with repayments made monthly in arrears on the equipment value less any deposit or trade-in. With a balloon, that amount is left owing at the end, so the regular repayments pay down only the rest of the loan, plus interest on the whole balance.
The insurance figure is an indication from the same five details our partner prices on: equipment type, value excluding GST, state, term and registration. It includes GST, and on a fixed multi-year policy it’s set for the whole term when the policy starts.
Real loans vary. Some lenders take repayments in advance, add establishment or monthly fees, or set the balloon in dollars rather than as a percentage. Fees that are financed, such as a broker, application or establishment fee, go in “Fees added to the loan”. Some lenders also fund the insurance premium at a different rate from the equipment: choose “In my finance” and enter it as the interest rate on the insurance. Use your lender’s figures where you have them.
Why include insurance in the monthly cost?
Because the lender makes it a condition of the loan. ANZ’s published chattel mortgage terms, for example, require the machine to be kept insured “at all times during this Mortgage” for “the full insurable value of the Goods against fire, accident and theft”, with the lender named on the policy as mortgagee. Failing to keep that insurance is a default under the same terms.
So the insurance runs as long as the finance. An annual policy is re-rated every year, so that part of your monthly cost can change. A fixed multi-year premium is set for the whole term when the policy starts, so the insurance part of the figure holds from the first month to the last.
What does a balloon do to the numbers?
| Balloon | Monthly repayment | Balloon at the end | Total interest |
|---|---|---|---|
| 0% | $3,048 | $0 | $32,875 |
| 20% | $2,641 | $30,000 | $38,435 |
| 30% | $2,437 | $45,000 | $41,215 |
| 40% | $2,233 | $60,000 | $43,995 |
Illustration: $150,000 over 60 months at 8.09%, repayments monthly in arrears. A bigger balloon lowers the monthly repayment but raises the total interest, because more of the loan stays outstanding for longer. As Moneysmart puts it, “you’ll have to repay the lump sum with interest, so the total cost of the loan is generally higher”. Balloon payments explained.
Where does the 8.09% come from?
It’s the Reserve Bank’s average fixed interest rate on new loans to small businesses in August 2026, from statistical table F7 (published 8 October 2026). It covers all kinds of small business lending, not equipment finance specifically, so treat it as a starting point and enter the rate your lender offers. The Reserve Bank has since raised the cash rate to 4.60%, from 30 September 2026, so new loans may cost more than this.
Can you use it as a chattel mortgage calculator?
Yes. A chattel mortgage is the most common way to finance equipment, and its repayments follow the same loan formula: the amount financed after any deposit or trade-in, the term, the rate and an optional balloon. Enter those and the calculator shows the monthly repayment, the balloon due at the end and the total interest.
Two things it doesn’t model: GST and fees. On a chattel mortgage a GST-registered business can generally claim the GST credit on the purchase in one tax period, so enter the price excluding GST. Establishment and monthly fees vary by lender, so add your lender’s figures to the result.
Buying with a chattel mortgage?
Most equipment is bought this way: a business loan where you own the machine from day one and the lender holds security over it. How a chattel mortgage works, and what your lender needs.
See a fixed premium for your machine
Get your insurance indication in about 90 seconds.
Frequently asked questions
How do I calculate equipment finance repayments?
Enter the amount, term, interest rate and any balloon. The calculator uses the standard loan formula with monthly repayments in arrears.
Does the calculator include insurance?
Yes. Choose your equipment, state and registration and it adds an insurance indication for the same term, spread across the loan. Send it to us in one step and we’ll be in touch, usually the same business day.
Do lenders require insurance on financed equipment?
Yes. ANZ’s chattel mortgage terms, for example, require the goods insured at full insurable value against fire, accident and theft, with the lender named as mortgagee.
What interest rate should I use?
Your lender’s. The starting 8.09% is the RBA’s average fixed rate on new small business loans in August 2026, not an equipment finance quote.
Does a balloon reduce the total cost?
No. It lowers the monthly repayment but usually raises the total interest, because more of the loan stays outstanding for longer.
Can I use this as a chattel mortgage calculator?
Yes. Chattel mortgage repayments follow the same loan formula: amount after deposit, term, rate and optional balloon. Enter the price excluding GST, and add your lender’s fees, which it doesn’t include.
Sources
- Reserve Bank of Australia: Statistical table F7, Business lending rates (published 8 October 2026)
- Reserve Bank of Australia: Cash rate target (rise to 4.60%, effective 30 September 2026)
- ANZ: Chattel Mortgage Terms and Conditions (02/2025)
- Moneysmart (ASIC): Car loans, balloon payments (updated 24 June 2026)
- Product information and approved item list from our specialist insurance partner (August 2026)
General information only, not personal advice. Read the policy wording before you buy.
