Tradie Toolbox · Drawer 4
Equipment payback calculator
Before you buy the machine, the scanner or the second compressor, work out how many months it takes to earn its keep, in a normal case and a cautious one.
Does it pay for itself?
Payback, normal case
n/a
- Net benefit per month$0
- Total to recover (kit plus finance)$0
- Payback if only half the benefit shows upn/a
- Jobs a month needed to break even on running costsn/a
- First 12 months, net of cost$0
Numbers tight? See what funding could do
If the result says the gap, the kit or the quote needs a hand, a 60-second enquiry shows what's possible. No credit check when you first enquire, and a real person reads it.
What payback actually tells you
Payback is the simplest honest test of a purchase: how many months until the money the kit makes has repaid the money you spent. It ignores resale value and tax effects, which makes it deliberately blunt. If the answer is longer than the time you expect to keep the equipment, or longer than the finance term, the numbers don't work, however good the machine looks parked on the lot.
The three ways kit earns money
- Extra jobs. Work you can now take that you couldn't before: trenching with your own excavator, tiling in half the time, handling bigger switchboards.
- Hours saved. A nail gun, a laser level or a diagnostic scanner can turn a day into a morning. The saved time only has value if you can fill it with paid work, so be sure of that.
- Hire and subbing avoided. If you hire a machine monthly or sub out a task regularly, owning can remove that cost. Compare against what you really spend over a year.
Against those, count everything the kit adds: fuel, servicing, insurance, registration, an operator if you need one, and storage. Leaving those out is how a good-looking payback becomes a poor one.
How to stress-test it
The calculator shows a cautious case that halves the benefit. If the cautious payback still sits inside the useful life of the equipment and the finance term, you can sleep on the decision. If it doesn't, ask whether a cheaper or second-hand machine does the same job. Our equipment finance hub covers the machines and tools tradies buy most, and explains how buying, leasing or borrowing change the cash and tax picture. Remember the rules on the instant asset write-off change, so check the current position on ato.gov.au or with your accountant.
From payback to a plan
A short payback is a good reason to talk about funding. A 60-second enquiry tells us the kit, the amount and your trade, and a real person comes back with options. There's no credit check when you first enquire, your details aren't sprayed around, and accurate answers mean we can point you the right way first time. Check the monthly repayment will sit inside your slow weeks too, using the Cash Flow Gap Planner.
Questions about this tool
What is payback in months?
It's how long the extra money a machine or tool earns takes to cover what it cost you to get it. If a skid steer costs $60,000 all up and adds $3,000 a month after running costs, the payback is 20 months.
What should I put in as the cost of finance?
Use the total extra you'd pay over the term, in dollars, on top of the purchase price. Your finance contact will give you that figure. Leave it at zero to see payback on the purchase price alone.
How do I estimate extra jobs honestly?
Count only work you're turning down or couldn't do without the kit, and use the profit per job after labour and materials, not the sale price. If you have no real jobs waiting, use hours saved instead, or both at half the number you hoped for.
Why does the calculator show a cautious case?
Because new equipment rarely earns on day one. The cautious view assumes only half the benefit shows up, which is a useful stress test before you commit to a term.
Does a quick payback mean I should finance it?
It means the sums can work. You still need to check the repayments sit comfortably inside your cash flow in the slow months, which the Cash Flow Gap Planner helps with.
Our promises
No credit check to enquire
Ask what's possible without leaving a mark on your credit file. A credit check only comes up once you've decided to go ahead.
No spray and pray
Your details don't get blasted around a pile of lenders. One real person looks at your situation and matches it properly.
A real person on your job
Someone who reads enquiries for a living calls you back. Fill the form in accurately and we'll point you the right way first time.
More tools in the box
Cash Flow Gap Planner
Weekly money in and out with your invoice terms. See the gap, the lowest point and how many weeks of runway you have.
Open the tool →Job Quote Margin Calculator
Labour, materials, markup versus margin, contingency and GST. Know what a quote really earns before you send it.
Open the tool →GST and BAS Set-Aside Planner
What to park from each invoice so the quarterly BAS and PAYG never ambush you.
Open the tool →Ute Running Cost Calculator
Fuel, rego, insurance, servicing, tyres and depreciation into a cost per week and per kilometre.
Open the tool →Loan Readiness Checklist
Tick off the documents lenders ask for, answer a short quiz and get a readiness note.
Open the tool →Done the sums? Let's talk about the money.
One short enquiry. No credit check when you first enquire, a real person reading it, and your details staying with us rather than going out to a pile of lenders.
No credit check to enquire
No spray and pray
A real person on your job