Calculator
Lease or loan? Work out the cost.
An estimate to plan with, not a quote.
Equipment finance calculator
Lease the equipment, or buy it with a loan?
Compare the total cost of a finance lease against an equipment loan. Adjust the cost, rates and term, or type the figures. Payments update as you go.
With a lease you pay a 10% residual (balloon) at the end of the term to own the asset, for lower monthly payments. With a loan you own the asset from day one, with no balloon at the end.
- This tool assumes a fixed interest rate and a fixed 10% residual on the lease. Your actual rate and residual depend on what a calculator can’t see: asset type and age, security, trading track record and credit profile.
- Rates shown are simple p.a.; your report shows the APR.
- Results are approximate and exclude lender fees. Not an offer of credit.
- Finance lease, monthly
- $2,887
- Equipment loan, monthly
- $3,134
- Residual (10%)
- $10,000
- Finance term
- 36 months (3 years)
| Cost | Finance lease | Equipment loan |
|---|---|---|
| Total payments | $103,930 | $112,811 |
| Residual at the end | $10,000 | $0 |
| Total cost | $113,930 | $112,811 |
On these numbers
Equipment Loan costs less on these numbers
You save $1,119 in total cost with an equipment loan
Your questions, answered.
No credit file impact · No cost to compare · No obligation
What is the difference between a finance lease and an equipment loan?
With a finance lease, the lender owns the equipment and you make regular payments to use it. At the end of the lease, you typically pay a residual value (usually 10% of the asset cost) to take ownership. With an equipment loan, you own the asset from day one and repay the full principal plus interest over the term. Loans generally have higher monthly payments but no balloon payment at the end.
What is a residual or balloon payment on a finance lease?
A residual, or balloon, payment is a lump sum due at the end of a finance lease. It represents the estimated remaining value of the equipment. This calculator uses a fixed 10% of the original asset cost, though lenders can structure residuals anywhere from 10% to 50% depending on the asset. At the end, you can pay the residual to own the asset, refinance it, or return the equipment.
How do we get paid?
Comparing costs you nothing. Not comparing can cost you plenty.
The headline rate rarely tells the whole story. Fees, charges and loan terms can add far more to what you repay. That’s why your Compare Report shows every cost we can identify side by side.
In most cases, the lender pays us, and only if you decide to proceed with their product offer. For more complex deals, or where the lender pays us little or nothing, we may charge a fee for our service. It doesn’t happen often, but when it does, it’s shown on your Compare Report and we’ll walk you through it before you decide.
No obligation to proceed, ever.
Not sure which option suits you?
Your Compare Report lays out your qualified equipment finance options across our panel of 70+ lenders, with rates, terms and the reasoning shown.
No credit file impact · No cost to compare · No obligation
Or talk to us: 1300 161 641 · support@tradefunding.com.au