Equipment Finance Calculator with Balloon Repayment
Compare equipment finance options with a balloon payment calculator. Estimate repayments, interest & loan terms to find the best fit for your business.
Equipment & Asset Finance Made Easy with Craggle
For any business, having the right equipment is critical to smooth operations—whether it’s commercial vehicles, industrial machinery, or specialised tools. However, acquiring these assets requires significant upfront capital, which can strain cash flow, especially for small to medium-sized enterprises (SMEs).
This is where equipment finance and balloon payment loans come in. Instead of paying the full amount upfront, businesses can finance the cost over time, ensuring financial flexibility.
To help businesses make informed financing decisions, we’ve built a comprehensive finance calculator that allows you to:
- ✅ Run finance scenarios with different loan amounts, terms, and interest rates
- ✅ Choose between advance or arrears payments
- ✅ Calculate total interest, monthly repayments, and final balloon payments
👉 Try the Craggle Balloon Payment Calculator now to get a snapshot of your estimated costs!
Craggle’s Equipment Finance & Balloon Payment Calculator
How the Calculator Works
Our car loan calculator with balloon payment allows you to adjust key financing parameters, such as:
- Loan Amount: The total purchase price of the asset.
- Interest Rate: Choose from fixed or variable rates.
- Loan Term: Finance periods range from 1–7 years.
- Payment Structure: Pay in advance (at the start) or arrears (after a period).
- Balloon Payment: The residual amount due at the end of the loan.
👉 Try the Craggle Balloon Payment Calculator now to see your estimated repayments!
What is Equipment Finance?
Equipment finance is a specialised form of asset finance that allows businesses to acquire vehicles, machinery, or tools without large upfront capital investment. Instead of purchasing outright, businesses can spread costs over time, ensuring financial flexibility.
Types of Equipment Finance
| Type of Finance | Best For | Key Benefit |
|---|---|---|
| Business Vehicle Loans | Commercial fleet purchases | Flexible terms & competitive rates |
| Machinery Finance | Industrial machinery | Asset-based lending with tax benefits |
| Equipment Leasing | Short-term or evolving needs | No ownership obligation, upgrade flexibility |
| Asset-Based Loans | Financing secured by existing assets | Access to capital without selling assets |
How Balloon Payment Finance Works
A balloon payment loan is structured to lower monthly repayments by deferring a portion of the principal to the end of the loan. This structure is common in car loans with balloon payments, allowing businesses to maintain cash flow while still acquiring necessary equipment.
Balloon Payment vs. Standard Loan
| Feature | Balloon Loan | Standard Loan |
|---|---|---|
| Monthly Repayments | Lower | Higher |
| Final Payment | Large lump sum | None |
| Total Interest Paid | Higher | Lower |
Should You Use a Balloon Payment?
✔ Yes, if you need lower monthly repayments and expect a lump sum later.
❌ No, if you want to pay down the loan without a large final payment.
Interest Rates on Equipment Finance
Equipment finance interest rates are fixed and start from 7.50% p.a. The actual rate you pay will depend on:
- Your credit profile
- The equipment you’re financing
- Whether you’re an asset-backed borrower (e.g., homeowner)
Based on industry analysis, industry-specific & specialised equipment (e.g., fit-outs, solar equipment) tend to come with higher rates than ‘primary’ equipment (e.g., machinery, vehicles).
“The options available to you depend on the lender’s understanding of who you are as a borrower and the asset being financed. Factors like your trading history, credit profile, and the financial documents you can provide all play a role in determining what lending options may be available to you.” — Benjamin Baume, Managing Director, Craggle
Compare Equipment Finance Rates & Repayments
| Equipment Finance | Monthly Repayments (7.50% p.a.) | Monthly Repayments (9.50% p.a.) | Monthly Repayments (11.50% p.a.) |
|---|---|---|---|
| $10,000 | $200.38 | $210.02 | $219.93 |
| $20,000 | $400.76 | $420.04 | $439.85 |
| $30,000 | $601.14 | $630.06 | $659.78 |
| $40,000 | $801.52 | $840.07 | $879.70 |
| $50,000 | $1,001.90 | $1,050.09 | $1,099.63 |
| $60,000 | $1,202.28 | $1,260.11 | $1,319.56 |
| $70,000 | $1,402.66 | $1,470.13 | $1,539.48 |
| $80,000 | $1,603.04 | $1,680.15 | $1,759.41 |
| $90,000 | $1,803.42 | $1,890.17 | $1,979.33 |
| $100,000 | $2,003.79 | $2,100.19 | $2,199.26 |
This example shows how interest rate variations affect monthly repayments on business equipment finance for different loan amounts, based on a five-year term.
Should You Refinance a Balloon Payment?
If you're approaching the end of a car loan with a balloon payment, refinancing may be a smart move. By refinancing, you can:
- ✔ Extend your loan term to break the lump sum into smaller payments
- ✔ Secure a lower interest rate if your business credit has improved
- ✔ Upgrade to a new vehicle or asset
👉 Use our balloon loan calculator now to compare your refinancing options!
Disclaimer: The opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations.