By the Loan Phone team Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking
A chattel mortgage calculator helps you estimate repayments based on five key factors: loan amount, interest rate, loan term, balloon payment percentage, and deposit amount. In Australia, rates typically range from 6-14% p.a. depending on business profile (indicative only), with terms from 1-7 years and optional balloons from 10-50%. For example, a $50,000 loan at 8.5% p.a. over 5 years with no balloon results in approximately $1,025 monthly repayments (for illustrative purposes only).
For personalized calculations based on your specific business circumstances and current market rates, use Loan Phone’s comparison tool to receive customized quotes from 100+ lenders.
| Business Profile | Indicative Rate | Typical Term | Monthly Repayment (on $50K) |
|---|---|---|---|
| Established (2+ years, strong) | 6-9% p.a. | 3-5 years | ~$975-$1,035 |
| Standard (1-2 years) | 9-12% p.a. | 3-5 years | ~$1,035-$1,115 |
| Developing/newer | 12-14%+ p.a. | 1-3 years | ~$1,115-$1,170+ |
Rates and repayments are indicative examples only. Actual rates depend on individual circumstances and lender assessment.
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Understanding Chattel Mortgage Costs
Chattel mortgage repayments comprise principal and interest payments over the agreed loan term. Unlike rental or lease payments, you’re repaying borrowed funds to purchase an asset you own from day one, with the lender holding security interest registered on the Personal Property Securities Register (PPSR). The total cost includes regular repayments, an optional balloon payment, and any associated fees. For comprehensive information, see our complete chattel mortgage guide.
Key Factors Affecting Repayments
- Loan Amount: The principal amount borrowed.
- Interest Rate: Varies based on your business profile and the asset.
- Loan Term: Typically 1-7 years.
- Balloon Payment: An optional final payment to reduce monthly repayments.
- Deposit Amount: A larger deposit (0-30%) can improve your rate.
How Repayments Are Calculated
Repayments are calculated using a standard amortization formula. However, for true accuracy that reflects current market rates and lender fees, it’s best to get a personalized quote.
Example Calculations
All examples below are for illustrative purposes only.
Example 1: Construction Equipment – No Balloon
| Purchase Price | $85,000 |
| Deposit | $15,000 |
| Loan Amount | $70,000 |
| Interest Rate (example) | 8.5% p.a. |
| Term | 5 years |
| Indicative Monthly Repayment | ~$1,435 |
Example 2: Commercial Vehicle – With Balloon
| Purchase Price | $65,000 |
| Deposit | $5,000 |
| Loan Amount | $60,000 |
| Interest Rate (example) | 9.25% p.a. |
| Term | 5 years |
| Balloon | 30% ($18,000) |
| Indicative Monthly Repayment | ~$875 |
Balloon Payment Impact
A balloon payment significantly reduces your monthly cash flow commitment but requires a lump sum payment at the end of the term.
| Balloon % | Monthly Repayment | Total Interest |
|---|---|---|
| 0% | ~$1,230 | ~$13,800 |
| 30% | ~$900 | ~$13,000 |
| 50% | ~$650 | ~$12,000 |
GST Treatment in Calculations
If your business is registered for GST, you can generally claim the GST portion of the asset’s price as an Input Tax Credit on your next BAS, which reduces the net cost of the asset. Consult your accountant for specific advice.
Tax Considerations
Under a chattel mortgage, you own the asset from the start, which allows you to claim tax deductions for interest and depreciation. This can significantly lower the asset’s after-tax cost. For a comparison of financing structures, see our chattel mortgage vs lease analysis.
Why Professional Quotes Matter
Online calculators offer estimates, but a professional quote accounts for specific lender rates, fees, and your unique business profile, providing a far more accurate picture of the total cost.
Frequently Asked Questions
How accurate are online chattel mortgage calculators? They are a good starting point but don’t include lender-specific fees or the exact rate you’ll be offered.
Can I make extra repayments on a chattel mortgage? Yes, most lenders allow this, but check the contract for any potential early termination fees.
How do balloon payments affect my calculations? They lower your monthly payments but require a large lump sum payment at the end of the loan.
Get Your Personalized Quote
Move beyond estimates and get actual quotes from over 100 lenders. Loan Phone’s comparison tool provides personalized calculations based on your specific business profile and the equipment you’re buying, with full cost transparency and no impact on your credit score.
Speak with Specialists
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Related Resources
Explore these related guides to learn more about business asset financing options:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific situation and business structure. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
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Last updated: October 17, 2025