This calculator uses industry-standard diminished-value amortization formulas for accuracy in commercial chattel mortgage estimation.
Quickly estimate your potential monthly repayment for a business asset finance solution, such as a Chattel Mortgage from St. George, using your preferred loan variables.
St. George Chattel Mortgage Repayment Calculator
Estimated Monthly Repayment
$0.00Detailed Calculation Breakdown
St. George Chattel Mortgage Repayment Formula:
Ammortized Portion (A) = Principal (P) – Residual (B)
Monthly Rate (r) = Annual Rate (R) / 12 / 100
Term in Months (T) = Term in Years (Y) * 12
Monthly Repayment (M) = A $\cdot$ $\frac{r(1+r)^T}{(1+r)^T – 1}$
Formula Source: Standard Amortization | St. George Chattel Mortgage Info
Variables Explained
The calculator uses the following variables to estimate your monthly commitment:
- Loan Principal Amount ($): The total cost of the asset you are financing.
- Annual Interest Rate (%): The rate of interest charged annually, expressed as a percentage.
- Loan Term (Years): The duration of the loan agreement. Chattel mortgages often range from 1 to 7 years.
- Residual/Balloon Payment ($): A lump-sum amount due at the end of the loan term. This reduces regular payments but leaves an outstanding balance at the end.
Related Calculators (Internal Links)
Explore other business finance tools to plan your acquisitions and cash flow:
- Asset Finance Tax Deduction Estimator
- Commercial Vehicle Loan Repayment Calculator
- Interest-Only Business Loan Calculator
- SMSF Property Investment Calculator
What is a Chattel Mortgage?
A Chattel Mortgage is a popular commercial finance product in Australia used by businesses to acquire vehicles or equipment. Under this structure, the business owns the asset (the ‘chattel’) from the start, and the lender (like St. George) takes a mortgage over the asset as security. This is distinct from a Hire Purchase agreement where ownership is transferred only after the final payment.
The primary benefit for many businesses is that they can claim the full GST input tax credit upfront (if registered for GST), and potentially claim tax deductions for depreciation and interest charges, making it an attractive option for asset acquisition and tax planning.
How to Estimate Your Chattel Mortgage (Example)
- Determine Amortized Amount: Subtract the Residual Value from the Loan Principal. (e.g., $50,000 Principal – $10,000 Residual = $40,000 Amortized Amount).
- Convert Rate and Term: Convert the Annual Rate (7.5%) to a Monthly Rate ($0.075 / 12 = 0.00625$). Convert the Term (5 years) to Months ($5 \cdot 12 = 60$ months).
- Apply Amortization Formula: Use the Monthly Rate, Term in Months, and Amortized Amount in the standard repayment formula to find the Monthly Repayment.
- Total Loan Cost: The total monthly repayments plus the final Residual/Balloon payment represent the full cost to the business.
Frequently Asked Questions (FAQ)
Is a Chattel Mortgage suitable for personal use?
No. Chattel Mortgages are specifically designed for business use where the asset is used primarily (usually more than 50%) for generating assessable income.
Can I include stamp duty and registration in the loan amount?
Yes, in most cases, expenses like stamp duty, registration, and insurance can be included in the total financed amount, increasing the Loan Principal.
What is the benefit of a Residual/Balloon Payment?
The Residual payment reduces your regular monthly instalments, improving business cash flow during the loan term. However, you must be prepared to pay the lump sum at the end.
Do I need to be a St. George customer to apply?
While St. George (and its parent Westpac Group) may offer preferential rates to existing business customers, asset finance products are typically available to all qualified Australian businesses.