Equipment Finance Calculator
Calculate your equipment finance repayments with New Zealand's most comprehensive equipment loan calculator. Compare rates, balloon payments, and tax benefits.
💡 Equipment Finance Tip: Use balloon payments to reduce monthly repayments by up to 50% while claiming full tax depreciation benefits.
Equipment Finance Calculator
Calculate your equipment finance repayments
Current NZ Equipment Finance Rates (January 2025)
🏦 Traditional Banks
🚀 Alternative Lenders
⚙️ Specialist Providers
Types of Equipment Finance Available
🚗 Hire Purchase (HP)
- • Own the equipment at the end of the term
- • Fixed monthly payments with optional balloon
- • Full tax depreciation benefits
- • Typical terms: 1-7 years
- • Best for: Manufacturing, construction, transport
📋 Operating Lease
- • Lower monthly payments
- • 100% tax deductible payments
- • No ownership at end (unless you buy)
- • Typical terms: 2-5 years
- • Best for: IT equipment, vehicles, machinery
💰 Finance Lease
- • Own equipment (lender holds legal title)
- • Full tax depreciation benefits
- • Payments are tax deductible
- • Typical terms: 3-7 years
- • Best for: High-value equipment, specialist machinery
🔄 Rent-to-Own
- • Immediate use with minimal upfront cost
- • Flexible upgrade options
- • Payments are tax deductible
- • Typical terms: 1-5 years
- • Best for: Technology, hospitality, retail equipment
Popular Equipment Finance Categories
Transport & Logistics
Trucks, trailers, forklifts
$25K - $500K typical
Construction
Excavators, cranes, tools
$15K - $1M typical
Manufacturing
CNC machines, presses
$50K - $2M typical
Hospitality
Kitchen equipment, POS
$5K - $100K typical
Medical
Imaging, dental, surgical
$20K - $500K typical
IT & Technology
Servers, software, hardware
$10K - $200K typical
Agriculture
Tractors, harvesters
$30K - $800K typical
Vehicles
Cars, vans, fleet vehicles
$15K - $150K typical
How to Use the Equipment Finance Calculator
📊 Basic Calculations
- 1. Enter the total equipment cost
- 2. Add your deposit amount (0-30% typical)
- 3. Select your preferred loan term
- 4. Input the interest rate (check our rates above)
- 5. Set balloon payment % (optional)
- 6. Click calculate to see your repayments
💡 Advanced Tips
- ✓ Use balloon payments to reduce monthly costs
- ✓ Compare hire purchase vs operating lease
- ✓ Consider tax benefits of different structures
- ✓ Factor in maintenance and insurance costs
- ✓ Get quotes from multiple lenders
- ✓ Check for manufacturer finance deals
Equipment Finance Tax Benefits in NZ
💰 Depreciation Benefits
- • Claim full depreciation on financed equipment
- • Rates vary by equipment type (3-67% per year)
- • Straight-line or diminishing value methods
- • Immediate deduction for low-value assets (<$1,000)
📋 Interest Deductions
- • Finance interest is fully tax deductible
- • Reduces taxable income dollar for dollar
- • Apply to both business and rental property
- • No restrictions on equipment finance interest
🔄 GST Benefits
- • Claim GST on equipment purchase immediately
- • Improves cash flow for GST-registered businesses
- • Apply GST to deposit and finance separately
- • Monthly GST refunds on lease payments
Equipment Finance vs Other Options
| Feature | Equipment Finance | Business Loan | Cash Purchase | Operating Lease |
|---|---|---|---|---|
| Ownership | ✓ Yes | ✓ Yes | ✓ Yes | ✗ No |
| Deposit Required | 0-30% | Often 20-40% | 100% | Usually none |
| Tax Benefits | Depreciation + Interest | Depreciation + Interest | Depreciation only | 100% deductible |
| Cash Flow Impact | Low monthly cost | Higher monthly cost | High upfront cost | Lowest monthly cost |
| Best For | Most equipment | Mixed purchases | Strong cash position | Technology, vehicles |
Ready to Finance Your Equipment?
Get personalized equipment finance quotes from New Zealand's top lenders. Compare rates, terms, and structures to find the best deal.
Equipment Finance Calculator FAQ
What equipment can I finance?
Almost any business equipment can be financed including vehicles, machinery, IT equipment, medical equipment, hospitality equipment, and more. Equipment must be for business use and typically valued over $5,000.
What's the difference between hire purchase and operating lease?
Hire purchase means you own the equipment and can claim depreciation. Operating lease has lower payments but you don't own the equipment, though payments are 100% tax deductible. Hire purchase is usually better for equipment you'll keep long-term.
How does a balloon payment work?
A balloon payment is a larger final payment (typically 10-50% of the equipment value) that reduces your monthly repayments. You can pay it, refinance it, or sometimes return the equipment. It's useful for preserving cash flow.
What deposit do I need for equipment finance?
Deposits typically range from 0-30% depending on the equipment type and your business profile. New equipment often requires lower deposits than used equipment. Some lenders offer 100% finance for established businesses.
Can I claim tax benefits on financed equipment?
Yes, you can claim both depreciation (based on IRD rates) and interest deductions on equipment finance. The equipment must be used for business purposes. GST-registered businesses can also claim GST on the purchase.
How long does equipment finance approval take?
Approval times vary from same-day for smaller amounts to 1-2 weeks for large equipment purchases. Having financial statements, equipment quotes, and business details ready speeds up the process significantly.