Machinery repayments, monthly and in total.
For businesses that budget on a monthly cycle rather than a weekly one. The same amortising calculation, with the monthly figure and the total interest across the term shown together.
Last reviewed 7 September 2026
Indicative repayment
Weekly
$588/week
Indicative only. Not a quote or offer of credit. Actual rates, fees, and repayments depend on the business profile and the lender's decision.
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Why monthly
Larger machines, monthly cycles, longer terms.
Weekly is the natural rhythm for a business whose revenue arrives continuously. Monthly is the natural rhythm for one that invoices on terms, which describes most New Zealand manufacturing, engineering and contracting businesses financing production plant.
The maths underneath is identical. This page simply leads with the monthly figure and the total interest, because those are the two numbers that go into a monthly budget and a board pack. The weekly equivalent is still shown, since it is the more intuitive comparison against a piece of hire equipment.
Machinery amounts are also larger and terms longer than the equipment average, which changes what matters. On a five-year term the total interest becomes a meaningful figure in its own right rather than a footnote, and it is worth looking at directly rather than inferring it from the payment.
Typical machinery amount
$40k to $300k
Common term
36 to 60 months
Indicative rate band
8% to 16% p.a.
Security
The machine
At a glance
Indicative monthly cost on common machinery amounts.
Produced by this calculator over a 60-month term at the indicative rates shown, rounded. Illustrative only, and not an offer of credit.
| Amount financed | 8% p.a. | 10% p.a. | 13% p.a. |
|---|---|---|---|
| $50,000 | ~$1,014 / month | ~$1,062 / month | ~$1,138 / month |
| $80,000 | ~$1,622 / month | ~$1,700 / month | ~$1,820 / month |
| $120,000 | ~$2,433 / month | ~$2,549 / month | ~$2,731 / month |
| $200,000 | ~$4,055 / month | ~$4,249 / month | ~$4,551 / month |
| $350,000 | ~$7,096 / month | ~$7,436 / month | ~$7,965 / month |
Indicative monthly repayments over 60 months at three rates. Illustrative, not an offer of credit.
The two numbers
Payment and total interest answer different questions.
The monthly payment
Can the business carry it.
This is an affordability question and it is answered against the monthly operating position rather than against the price of the machine. A payment that fits comfortably in a normal month and uncomfortably in a quiet one is the situation worth identifying before signing rather than after.
It is also the number a lender is assessing, in substance. Serviceability is the question underneath most equipment credit decisions, and a business that has already worked out the answer is in a different conversation from one that has not.
The total interest
What the money actually cost.
On a five-year machinery facility the total interest is frequently a five-figure sum, and it is the number that makes the term decision visible. Extending from 48 to 60 months lowers the monthly payment and raises this figure, and seeing both at once is what turns that into a decision rather than a default.
It is also the fair comparison against an outright purchase. Cash has no interest cost but it does have an opportunity cost, and comparing total interest against what the same money would have done in the business is a question the accountant is the right person to run.
What it excludes
Four things the figure does not include.
The calculation is a standard amortising schedule on the amount, rate and term entered, and nothing else. Establishment and documentation fees are not in it, and on smaller amounts a fee of a few hundred dollars moves the effective cost more than a percentage point of rate does.
A deposit is not in it either. Where a deposit is being paid, the amount to enter is what is actually being borrowed rather than the price of the machine, and the difference is the most common reason a calculated figure and a quoted one disagree.
GST is not in it. Under a hire purchase the amount financed is normally the GST-exclusive price, with the GST generally claimable in the return covering the period the agreement begins, subject to the accountant’s confirmation of the accounting basis used. Entering a GST-inclusive figure overstates the repayment.
A residual or balloon is not in it. On a finance lease the residual is not repaid across the term, so the real payment on a lease is lower than this calculator shows and a lump sum falls due at the end. For a lease, the useful approach is to calculate on the amount actually amortising and treat the residual separately.
Indicative only
This is a calculation, not a quote.
Nothing here is an offer of credit and no rate shown is available on request. The rate a business is charged is a function of its trading history, the machine, any deposit, the term and the lender’s credit assessment together, and only the lender sees all of those. Every figure this page produces is indicative and based on the inputs shown. Actual rates, fees and repayments are set by the lender after assessment.
References
Sources
- Inland Revenue, GST on hire purchase and leases
Backs the note that the calculator works on the GST-exclusive amount financed under a hire purchase.
- Reserve Bank of New Zealand, interest rate statistics
Context for why indicative rate bands move over time rather than being fixed figures.
- Commerce Commission, consumer credit
Backs the note that disclosure obligations differ where a sole trader borrows wholly or predominantly for personal use.
FAQ
Machinery repayments, common questions
Is monthly or weekly better on machinery finance?
Neither is better in itself. The useful test is which matches how revenue arrives, because a repayment that lands in the same rhythm as income is easier to absorb. Businesses invoicing on 20th-of-the-month terms commonly prefer monthly; businesses taking daily takings commonly prefer weekly. Some lenders offer both on the same facility.
Does paying weekly instead of monthly reduce the total interest?
Slightly, on the same nominal rate, because principal reduces marginally faster across the year. The effect is small on short terms and modest on five-year ones, and it is generally a secondary consideration next to matching the repayment to the cash-flow rhythm.
What term is typical on machinery finance in New Zealand?
Thirty-six to sixty months covers most of it. The ceiling is usually driven by the age the machine reaches at the end of the term rather than its age at purchase, so newer machines attract longer terms. Production plant with a long working life sits at the upper end more often than mobile plant does.
Can installation and commissioning be financed?
Commonly yes, where they form part of the same purchase. Freight, rigging, installation and commissioning on production plant are frequently financed inside the same agreement, which is worth reflecting in the amount entered here. Ongoing service contracts sit outside it.
How does a deposit change the figures?
A deposit reduces the amount financed, so it lowers both the payment and the total interest proportionally. It also reduces the lender’s exposure, which commonly improves the indicative rate offered. The figure to enter on this page is the amount actually borrowed rather than the price of the machine.
Is the monthly payment fixed for the whole term?
On a fixed-rate amortising facility, yes, and that is the common structure on New Zealand machinery finance. On a variable-rate facility the payment can move with the lender’s base rate. Which applies is stated in the finance agreement, and it is a reasonable thing to confirm before signing.
What happens if the machine is sold before the term ends?
The finance is normally settled from the proceeds, and where the sale raises less than the balance owing the difference remains payable. Depreciation on plant is front-loaded, so that gap is more likely early in a term than late in one. Some agreements also carry an early settlement fee, which the contract sets out.
Does this calculator handle a lease with a residual?
Not directly. A residual is not repaid across the term, so the actual payment on a lease is lower than shown here and a lump sum falls due at the end. Calculating on the amount that actually amortises and treating the residual as a separate figure gives the closer picture.
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