Model your excavator finance repayments and compare chattel mortgage, hire purchase, and finance lease structures side by side. See GST credits, depreciation benefits, and instant asset write-off eligibility for your machine.
| Frequency | Repayment | Total interest | Total cost |
|---|---|---|---|
| Weekly | $676.10 | $25,786 | $175,786 |
| Fortnightly | $1,352.91 | $25,879 | $175,879 |
| Monthly(selected) | $2,934.92 | $26,095 | $176,095 |
Same asset, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | |
|---|---|---|---|
| Monthly repayment | $2,934.92 | $2,934.92 | $2,934.92 |
| Total cost | $176,095 | $176,095 | $176,095 |
| Total interest | $26,095 | $26,095 | $26,095 |
| GST credit | $13,636 | On each payment | On each payment |
| Annual depreciation benefit | $2,841 | $2,841 | N/A (payments deductible) |
| Annual interest deduction | $1,305 | Not until ownership | Included in payments |
| Est. total tax benefit | $34,365 | $14,205 | $44,024 |
| Est. net cost after tax | $141,731 | $161,891 | $132,072 |
Tax benefit estimates are indicative only and based on simplified assumptions. Actual tax outcomes depend on your individual circumstances, business structure, and other factors. Consult your accountant or tax adviser for advice specific to your situation.
Switching from monthly to weekly repayments could save you $309 in interest over the life of this finance.
The structure comparison table shows how chattel mortgage, hire purchase, and finance lease differ for the same inputs. The tax treatment can make a significant difference to the net cost of your excavator.
Toggle the instant asset write-off on to see whether your asset qualifies. For eligible assets under $20,000, the year one tax benefit can substantially reduce the effective cost.
A higher balloon reduces your regular repayments but increases the total cost and creates a lump sum obligation at the end. Use the slider to see the trade-off between cash flow and total cost.
Base rate entities (turnover under $50M) pay 25% company tax. Non-base rate entities pay 30%. The tax rate affects the value of every deduction, so switching between them shows a meaningful difference in net cost.
Most lenders want to see at least 12-24 months of trading history. Established civil and earthmoving businesses with a track record of project work are viewed favourably. Newer operators may need a larger deposit or project contracts.
Lenders review your business financials including profit and loss, balance sheet, and recent tax returns. For excavator finance, they also look at your current fleet utilisation and whether the new machine is replacing or expanding capacity.
The brand, model, age, and hours on the excavator affect the rate and terms. New machines from Caterpillar, Komatsu, Hitachi, and Volvo attract the best rates. Used machines are assessed on hours, service history, and overall condition.
Your personal and business credit history influences the rate. A clean credit file opens access to the most competitive rates. Some non-bank lenders can work with less-than-perfect credit if the business fundamentals are strong.
Compare excavator finance from 50+ lenders. Find a structure and rate that works for your business.
Subject to lender approval, terms and conditions apply.
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Excavator finance rates in Australia typically range from 5.5% to 9% p.a. depending on the machine size, brand, your business trading history, and the lender. New excavators from established brands (Caterpillar, Komatsu, Hitachi, Volvo) generally attract the most competitive rates. Mini excavators under $50,000 may qualify for low-doc options with slightly higher rates. The rate used in this calculator is for illustration only.
Yes. Most lenders finance used excavators up to 15 years old, though some specialist equipment lenders go further for well-maintained machines. Hours are a key factor — lenders typically prefer under 10,000-12,000 hours for standard approval. Machines with higher hours may still be financed at a higher rate or shorter term. An independent mechanical inspection can help with approval on older units.
Match the finance term to your project pipeline and the machine's expected useful life. For a new full-size excavator with a 12-15 year useful life, 5-7 years is common. For a used machine or a mini excavator, 3-5 years may be more appropriate. If you have a specific project contract, some operators align the term to the contract duration to ensure the machine is paid off by project completion.
Not always. Many lenders offer 100% finance for excavators, particularly for new machines from established brands and borrowers with strong trading history. A deposit of 10-20% can reduce your rate, lower repayments, and improve approval chances. Trade-ins of existing plant and equipment can also serve as a deposit.
Yes. Under a chattel mortgage, you can claim depreciation on the excavator plus deduct the interest. Finance lease payments are fully deductible as a business expense. The instant asset write-off applies to eligible assets under the current threshold. Excavators used for income-producing purposes qualify for these deductions. Consult your accountant for advice specific to your business structure.
A balloon (residual) is a lump sum due at the end of your finance term. It reduces your regular repayments during the term, which can improve cash flow during quieter periods between projects. At the end of the term you can pay out the balloon, refinance it, trade up to a newer machine, or in the case of a lease, return the excavator. Consider your expected utilisation rate when choosing a balloon level.
Results are estimates only and should not be relied upon for financial decisions. Actual excavator finance repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.