Equipment and Vehicle Finance Calculator

What is a residual or balloon?

A balloon payment is a larger final payment left at the end of a loan term, which keeps the regular repayments lower. Residual value is the amount still owing on a leased asset at the end of the term. Either way, you pay it out, refinance it or sell the asset to clear it.

Setting a residual or balloon in this calculator lowers the estimated repayment and raises what is owing at the end, and the honest comparison is both numbers together. Which structure suits, and what happens to the asset at the end of the term, differs between a chattel mortgage, a finance lease and rental: our chattel mortgage vs lease vs rental guide walks through it.

Finance for equipment, vehicles and other assets

Asset finance suits equipment, vehicles and other business assets, from machinery and tools to utes, vans and trucks. The amount financed is the price less any deposit or trade-in. A residual or balloon lowers the regular repayment by leaving a lump sum owing at the end of the term, which you then pay out, refinance or clear by selling the asset. A larger residual means smaller repayments but more owing at the end, so it is a trade-off worth modelling before you commit. To talk through the right structure for a specific purchase, see our equipment finance and vehicle finance pages.