Free tool
Lease vs buy calculator
Compare the cash cost of a chattel mortgage against a finance lease or rental for the same equipment.
| Chattel mortgage (buy) | Finance lease | |
|---|---|---|
| Monthly payment | $1,712.64 | $1,596.90 |
| Lump sum at end | $16,000 balloon (you keep the asset) | $24,000 residual (pay to keep, or return) |
| Total cash over term | $98,207 | $100,651 |
| GST | Usually claimable upfront on the price | Charged on each payment |
| Tax deductions | Interest + depreciation | Lease payments |
Estimate only; excludes fees and tax-timing effects. Talk to your accountant.
How to read this
This compares the total cash out of a chattel mortgage (own it, pay a balloon) against a lease (pay to use it, pay or return at the end). It ignores tax timing differences, which are often the deciding factor — talk to your accountant.
Chattel mortgage vs lease
With a chattel mortgage your business owns the asset from day one; with a lease the financier owns it and you pay for use. Ownership drives GST and depreciation treatment.