What will the machine cost you a week?
Use our simple machinery finance calculator to set the price, deposit, term and balloon for an indicative repayment. It's a guide to get you in the ballpark. The real number comes back once we've matched your deal to the right lender.
Machinery Finance Calculator
Indicative only. When using this tool the calculation does not represent or indicate any offer for a loan, quote or approval. It assumes a fixed rate of 7.49% p.a. and does not allow for fees, charges or the specifics of your application.
Understanding Your Machinery Loan Repayments
A handful of factors shape what you pay each week or month on a machinery loan. Knowing how they work together makes it easier to choose a structure that suits your business and cash flow.
Interest rates for machinery loans
Machinery finance rates in Australia generally sit between around 6.55% and 15% p.a. The rate you are offered depends on a mix of factors, including:
- Your credit profile and business trading history
- The age and condition of the machine
- The loan amount and the size of any deposit
- The length of the loan term
- The finance structure you choose — chattel mortgage, commercial hire purchase or finance lease
Loan term considerations
The loan term you pick balances affordable repayments against the total cost of the finance:
Documentation provided will determine your rate. No financials falls under no doc and low doc applications, which are higher than full doc applications that provide full financials.
| Loan term | Advantages | Considerations |
|---|---|---|
| 1–3 years (short) | Less interest paid overall, and you build equity in the machine faster | Higher regular repayments and a bigger impact on day-to-day cash flow |
| 4–5 years (medium) | A balance between manageable repayments and total interest cost | The most popular choice for machine and equipment finance |
| 6–7 years (long) | The lowest regular repayments, which helps preserve working capital | More interest paid across the full life of the loan |
Low doc, lite doc and full doc
The documentation you provide also shapes your rate. Broadly, the more financial information you can supply, the sharper the pricing available:
| Documentation | Advantages | Considerations |
|---|---|---|
| Full doc | Full financials (tax returns and financial statements) provided — access to the sharpest rates and higher loan amounts | Requires up-to-date tax returns and financial statements |
| Lite doc | Some financial information provided without a complete set — rates that generally sit between full doc and low doc | May still require items such as BAS, bank statements or an accountant’s letter |
| Low doc | Little or no financials — assessed on alternative information, which suits self-employed applicants and newer ABNs | Rates are typically higher than full doc and a deposit may be required |
Indicative rate guide
Rates generally range from 6.55% p.a. to around 15% p.a. A starting point only — your actual rate depends on the asset, its age and kilometres, the finance term, any deposit, your ABN history and the credit assessment.
| Scenario | Indicative rate | Notes |
|---|---|---|
| New excavator / earthmoving | from 6.55% p.a. | Strong ABN, clean credit, eligible asset |
| Late-model used machinery | from 7.55% p.a. | Rate varies with asset age, hours and borrower profile |
| Attachments & ancillary equipment | from 7.55% p.a. | Terms and rates subject to asset and lender criteria |
| Older machinery | case by case | Machines can be financed subject to age and hours at the end of the finance term |
| Access & material handling equipment | from 7.55% p.a. | Forklifts, telehandlers and access equipment, subject to lender criteria |
| Low-doc (established ABN) | from 8.55% p.a. | No financials may be required for eligible applications, subject to lender limits |
| New-to-industry / new ABN | case by case | Deposit, additional documentation or security may be required |
Indicative rates only and subject to change. The rate available will depend on the lender, loan amount and term, asset type and age, business trading history, credit profile and other eligibility criteria. Fees and charges may apply. Finance is subject to lender approval and lending criteria. Overdrive Commercial Funding (ABN 87 659 049 895), authorised credit representative of Connective Credit Services Pty Ltd, Australian Credit Licence 389328.
Why balloon payments help
A residual at the end lowers your weekly repayment now, which suits operators who refresh machines every few years. We’ll model it with you.
GST on the purchase
On a chattel mortgage you can generally claim the GST on the machine in your next BAS — the calculator works off the price you enter, so choose ex- or inc-GST consistently.
The rate you actually get
Depends on the asset age, term, deposit and your ABN history. See the indicative rate guide below.