Chattel mortgage calculator
Split each repayment into principal and interest, by month and by financial year. Ideal for working out the interest you can claim.
Fill in what's on your finance contract. Leave the interest rate blank if you only know the repayment, or leave the repayment blank to work it out.
| Monthly repayment | |
| Interest rate | |
| Total principal | |
| Total interest | |
| Balloon / final payment | |
| Total of all payments |
Interest and principal by financial year
Show full repayment schedule
Estimate using the standard effective-interest method, which most lenders use. Some lenders use a different method, so check your contract or lender statement before lodging.
What is a chattel mortgage?
A chattel mortgage is a business loan to buy a vehicle or equipment. You own the asset from day one and the lender holds a mortgage over it until the loan is paid off. Each repayment is made up of interest and principal. Early repayments are mostly interest, and later repayments are mostly principal.
Common questions
Which part of a chattel mortgage can I claim?
For the business-use portion, you generally claim the interest as a deduction and depreciation on the asset itself. The principal part of each repayment isn't deductible. Car limits apply to passenger vehicles.
Can I claim the GST on a chattel mortgage?
If you're registered for GST, you can usually claim the GST included in the purchase price on your next BAS, up to the car limit for passenger vehicles. There's no GST on the interest or repayments.
What is a balloon payment?
A balloon (or residual) is a lump sum due at the end of the loan. It lowers your monthly repayments but means more interest overall, because you're borrowing more for longer.
What's the difference between paying in advance and in arrears?
In advance, your first repayment is due when the loan starts, so it's all principal. In arrears, the first repayment is due a month later and includes a month's interest.