Small Business Finance Plant & Equipment Lease Calculator

Our Plant & Equipment Lease Calculator helps business owners estimate lease repayments before you speak with a lender. It’s important because changing the residual (balloon), term and interest rate can materially affect cash flow, total interest paid and the end-of-term payout amount. The calculator provides estimates only and is general information, not personal advice; consider your objectives, financial situation and needs, and check the lease contract, fees and tax treatment with your accountant or adviser.

How to complete the calculator (best-practice order):

1. Purchase Price: Enter the total amount you want to finance, using whole numbers only (no dots or commas). Include relevant on-road and acquisition costs you intend to finance, such as applicable tax, stamp duty, registration, insurance or other costs.

2. Balloon or Residual Value: Choose the residual as a percentage of the purchase price. A higher residual usually lowers the ongoing repayments, but increases the amount due at the end and can increase the overall cost across the term. Select a residual that matches your expected end-of-term plan (refinance, trade-in, or pay out).

3. Term of Loan: Select the number of years. Longer terms typically reduce repayments but can increase total interest paid. Use a term that aligns with the asset’s useful life and how long you expect to keep it.

4. Interest Rate: Select a rate to simulate. The displayed range is indicative only; your actual rate depends on the lender and your circumstances and can only be confirmed after you apply.

5. Calculate: Run the estimate, then re-run scenarios to compare different residuals, terms and rates for a clearer view of affordability versus total cost.

How to interpret the results:

1. Repayment estimate: Treat this as a guide for budgeting, not a quote.

2. Residual due: Note the end-of-term balloon amount you’ll need to pay or refinance.

3. Amortisation graphs: Review how the balance reduces over time and how each repayment splits between interest and principal, which helps you understand cost versus payoff progress.