Equipment finance repayment
Monthly instalment, total interest and total cost of financing a tractor, implement or vehicle.
The price you will finance from, as on the quote. Use the VAT-inclusive figure if the VAT is being financed too.
Blank for no deposit.
Use the rate on your quote, e.g. prime plus or minus a margin. Rates change; this tool doesn't assume one.
60 months = 5 years.
Seasonal loans are often repaid once or twice a year, timed to harvest income.
Optional. A lump sum left to pay at the end; it lowers the instalment but you pay interest on it throughout.
Optional once-off fee, taken here as paid up front.
Optional monthly admin fee, charged every month of the term.
Enter the purchase price, interest rate and term to see the instalment.
How this is calculated
This is a standard amortising loan with an optional balloon. The annual rate is treated as nominal and compounds once per payment period, so the rate per period is the annual rate divided by the number of payments a year. Worked example: a R1 000 000 tractor, 10% deposit, 12% a year, 60 months, monthly, with a 30% balloon.
- Amount financed (PV) = price − deposit. R1 000 000 − R100 000 = R900 000.
- Rate per period (r) = annual rate ÷ payments per year. 12% ÷ 12 = 1% a month (0.01).
- Number of payments (n) = term in months × payments per year ÷ 12. 60 × 12 ÷ 12 = 60.
- Balloon (B) = balloon % × price. 30% × R1 000 000 = R300 000, paid with the last instalment.
- Instalment = (PV − B ÷ (1 + r)n) × r ÷ (1 − (1 + r)−n). 1.0160 = 1.8167, so B today is R300 000 ÷ 1.8167 = R165 135, and (R900 000 − R165 135) × 0.01 ÷ (1 − 0.55045) = R16 346.67 a month. Without the balloon it would be R20 020.00.
- At 0% interest the instalment is simply (PV − B) ÷ n.
- Total interest = instalment × n + B − PV. R16 346.67 × 60 + R300 000 − R900 000 = R380 800.
- Cost of finance = interest + initiation fee + monthly service fee × term in months. With a R5 000 initiation fee and R69 a month: R380 800 + R5 000 + R4 140 = R389 940.
- Total repaid = deposit + all instalments + balloon + fees. Here R1 389 940 for a R1 000 000 machine.
The yearly summary adds up each year's instalments, splitting every one into interest on the balance still owed and capital that reduces it. The initiation fee is taken as paid up front; some lenders add it to the loan instead, which raises the instalment slightly.
This is an estimate. A bank's quote will differ: rates are usually linked to prime and change when it does, interest may be calculated daily rather than per period, and fees, credit life and asset insurance vary between lenders. Ask for the full cost of credit in writing and compare quotes on the same terms.
Read the guide: Financing farm equipment: what a loan really costs
Results are estimates for planning. Check product labels and local recommendations before you apply anything.