ABN Car Loan & Business Vehicle Finance Calculator 2026-27
Repayments, balloon payment, GST credit and the deductible interest slice on a business car, work ute, van or trailer financed under your ABN.
Monthly
$954.09
Balloon Owing
$18,000
Privacy-First: We don't store your financial details
No account required • Balloon payment included • Built for ABN holders
Drive away price including GST.
Cash down plus any trade-in value.
The rate quoted on your finance contract.
Your logbook percentage. Private use is not deductible.
Percentage of the amount financed still owing as a lump sum at the end of the term.
Monthly Repayment
Due as a lump sum after your final scheduled payment. You pay it out, refinance it, or sell or trade the vehicle to cover it.
Balloon Reality Check
A balloon lowers the monthly payment but raises total interest. Drag the balloon slider to 0% and watch the total interest figure drop.
Want a broker to call you about this?
That repayment above is only an estimate, built from figures you typed in yourself. A licensed finance broker can talk you through your finance options for free. Takes 60 seconds to ask, and you are under no obligation.
AusCalc is not a credit provider, a broker or a credit assistance provider, and nothing on this page is credit advice or an offer of finance. If you tick the box above we pass your details to a licensed asset finance broker we work with, who holds an Australian Credit Licence. AusCalc may receive a fee if you take out finance through them. You are under no obligation, and any decision about credit is between you and them. They will introduce themselves and give you their credit guide when they make contact. We do not pass your details to anyone else.
Get your breakdown as a PDF
Free report of the numbers above. Plus an email from us when ATO rates change.
No spam. Only rate-change updates. Your calculation stays in your browser; we only receive your email address.
Premium Australian Business Intelligence
Business Vehicle Finance Analysis Report
Repayment and balloon forecast for a $60,000.00 asset financed over 5 years at 7.5% with a 30% residual.
Scenario Parameters
Financial Analysis
This document provides calculated estimates based on public Australian Taxation Office (ATO) guidelines and typical business parameters for the 2024-2026 financial years. AusCalc provides these models for strategic planning purposes only. These figures do not constitute personal financial, legal, or professional tax advice. Actual results depend on individual tax structure, deductions, and legislation changes. We mandate that you verify these projections with a Register Tax Agent or Financial Advisor before executing business strategies.
Invoice the job with GST and the tax to set aside worked out.
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
Explore Related Calculators
Financing a Work Vehicle or Equipment in Australia (2026-27)
How This Vehicle Finance Calculator Works
Most business vehicle and equipment loans in Australia are written with a balloon, also called a residual. Your scheduled repayments do not pay the loan down to zero. They pay it down to the balloon, and that lump sum falls due after the final payment. That is why a ute on a five year term with a 30% residual looks so much cheaper per month than the same ute with no residual.
This calculator solves the standard annuity formula carrying a future value, which is the same maths a lender uses:PMT = r × (P × (1 + r)^n - FV) ÷ ((1 + r)^n - 1)where P is the amount financed after your deposit and trade-in, r is the monthly interest rate, n is the number of monthly payments and FV is the balloon still owing at the end. It then applies your business use percentage to the interest to estimate the deductible slice, and works out the GST credit against the 2026-27 car limit.
Worked Example: A $60,000 Work Ute
A sole trader buys a one tonne ute for $60,000 drive away with no deposit, financed over 5 years at 7.50% with a 30% residual. The ute is used 100% for business and the trader is registered for GST.
Amount financed (P) = $60,000.00
Monthly rate (r) = 7.50% ÷ 12 = 0.00625
Payments (n) = 5 × 12 = 60
Balloon (FV) = 30% × $60,000 = $18,000.00
0.00625 × ($60,000 × 1.00625^60 - $18,000) ÷ (1.00625^60 - 1)
$954.09 per month
Fortnightly ($954.09 × 12 ÷ 26) = $440.35
Weekly ($954.09 × 12 ÷ 52) = $220.18
Scheduled payments = $954.09 × 60 = $57,245.63
Plus the balloon = $57,245.63 + $18,000 = $75,245.63
Total interest = $15,245.63
One tonne ute, so the car limit does not apply
$60,000 ÷ 11 = $5,454.55
The same ute with no residual costs $1,202.28 a month, which is $248.19 more, but total interest drops to $12,136.61. So the balloon buys about $248 a month of cash flow for roughly $3,109 in extra interest, and leaves $18,000 to deal with in five years. Whether that is a good trade depends entirely on what cash flow is worth to you right now.
The Car Limit: Why Your Ute and a Dual Cab Are Treated Differently
The car limit for 2026-27 is $69,883.00. Where it applies it caps two things: the cost you can depreciate, and the GST credit you can claim, which is limited to one eleventh of the limit, or $6,353.00.
The catch that surprises a lot of tradies is that the limit does not apply to every work vehicle. It applies to passenger vehicles designed to carry fewer than 9 passengers and a load under one tonne. Payload is gross vehicle mass less the basic kerb weight, both of which are on the compliance plate. A genuine one tonne ute usually falls outside the definition, so its cost and GST credit are not capped. A high spec dual cab with a payload under one tonne usually falls inside it, and gets capped.
- Car limit 2026-27$69,883.00
- Maximum GST credit where capped$6,353.00
- Luxury car tax threshold 2026-27$80,809, or $91,661 fuel efficient
- LCT paid on a purchaseNever claimable as a GST credit
Instant Asset Write-Off: Check the Status Before You Buy
This one is worth reading carefully if you are timing a purchase. The ATO’s instant asset write-off limits table currently lists $20,000 for assets first used or installed ready for use on or after 1 July 2023, with no end date. The permanent extension from 1 July 2026 was carried in the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, which passed the Senate on 19 August 2026.
It is still worth confirming rather than assuming. This threshold has moved more than once, and without the concession the position in the underlying law is far lower, which would mean an asset you expected to write off immediately instead goes into the small business pool and depreciates over several years. That is a real cash flow difference on a work vehicle purchase.
Two things follow. First, check the current status on the ATO instant asset write-off page or with your accountant before you commit to a purchase date, because this can change at any time. Second, remember that even when the write-off is available, a vehicle costing more than the threshold does not qualify at all. The entire cost of the asset must be under the limit, not just the business use portion, so a $60,000 ute was never an instant write-off candidate under a $20,000 threshold regardless.
Who Should Use This Calculator
Sole traders and small business owners pricing a work ute, van, trailer, excavator, trade tools or any other financed business asset. It is built for the ABN holder who wants to know the real monthly number, what is still owing at the end, and roughly what comes back through the tax and BAS side before walking into a dealership or broker.
Frequently Asked Questions (FAQ)
What is a balloon payment on a car or ute loan?
A balloon, or residual, is a lump sum still owing at the end of your finance term. Instead of paying the loan down to zero, your regular repayments only pay it down to the balloon amount, which is why those repayments are lower. At the end of the term you either pay the balloon out, refinance it, or sell or trade the vehicle to cover it. A 30% balloon on a $60,000 loan means $18,000 is still owing after the final scheduled payment.
Does a balloon payment save me money?
No. A balloon lowers your monthly repayment but increases total interest, because you are carrying a larger balance for longer. The trade off is cash flow now versus cost over the life of the loan. Set the balloon slider to zero and compare the two total interest figures on your own numbers to see the size of the gap.
How much GST can I claim on a work vehicle?
If you are registered for GST, generally one eleventh of the price, reduced to your business use portion. Where the car limit applies the credit is capped at one eleventh of the limit, which is $6,353.00 for 2026-27. Luxury car tax is never claimable. How and when you claim also depends on your finance type, since a chattel mortgage and a lease are treated differently.
Is the interest on a business vehicle loan tax deductible?
Generally the business use portion of the interest is deductible, and so is depreciation on the business use portion of the cost, subject to the car limit. Private use is not deductible. You need records, usually a logbook, to support the percentage you claim. The deductible interest figure here estimates the interest slice only and does not include depreciation.
Chattel mortgage, lease or hire purchase. What is the difference?
Under a chattel mortgage you own the vehicle from day one and the lender takes security over it, so if you are registered for GST you generally claim the full GST credit up front on your BAS. Under a lease the financier owns the asset and you claim GST on each lease payment instead, with the payments themselves usually deductible. Commercial hire purchase sits in between, with ownership passing to you at the end. Which one suits depends on your GST registration, your accounting method and your cash flow, so it is worth a short conversation with your accountant before you sign anything.
Can I use this for equipment and machinery, not just vehicles?
Yes, though there is now a dedicated equipment finance calculator that does the job properly. The repayment maths is identical, but an equipment deal also lets you compare a chattel mortgage against a finance lease and a rental, and the GST comes back at very different times depending on which one you sign. The car limit never applies to plant and machinery either, so nothing caps the credit.