By Eugene Maslov, Founder and Finance Broker at Lendr360
Published 28 September 2026 · Last reviewed 28 September 2026
The repayment might fit your budget. But how much work must the machine do to justify buying it?
Before committing to new equipment, translate its monthly cash commitments into something practical: the number of extra jobs or productive hours needed to cover them.
This gives you a useful starting point for deciding whether the purchase matches the work available.
Start with the costs the equipment adds
Build a monthly estimate that includes:
- Finance repayments and ongoing account fees.
- Additional insurance, storage or software subscriptions.
- Scheduled servicing and other recurring commitments.
- Any extra staffing costs that apply regardless of how much work comes in.
Keep delivery, installation, training and any deposit in a separate upfront budget. Record any balloon payment separately so it remains part of the longer-term plan.
Count each cost once. For example, labour included in your per-job calculation should not also appear as the same monthly expense.
Work out what each job actually contributes
The invoice amount is not the amount available to cover the machine’s commitments.
Subtract the additional costs of completing each job, such as materials, fuel, consumables and extra labour. The amount remaining is its contribution.
Business Queensland explains how fixed costs and the contribution from sales help determine the level of activity needed to cover costs. The calculation below adapts that principle into a simple equipment cash-coverage check.
A simple example: 12 extra jobs a month
Assume the following illustrative figures:
| Item | Amount |
|---|---|
| Monthly finance repayment | $1,800 |
| Additional fixed monthly commitments | $600 |
| Total added monthly cash commitments | $2,400 |
| Revenue per additional job | $500 |
| Variable costs per additional job | $300 |
| Contribution per additional job | $200 |
$2,400 ÷ $200 = 12 extra jobs per month.
Under these assumptions, the machine needs 12 additional jobs each month to cover those added commitments.
This is a cash-coverage check, not a full profitability calculation. It does not establish a return on your deposit, cover existing business overheads or account for depreciation, tax and eventual replacement. Figures exclude GST; GST cash movements should be considered separately.
If you charge by the hour, use the contribution per productive, billable hour instead.
Test a quieter month before committing
Using the same example:
- Eight extra jobs: $1,600 contribution, leaving an $800 shortfall.
- Twelve extra jobs: $2,400 contribution, covering the added commitments.
- Sixteen extra jobs: $3,200 contribution, leaving $800 before other business costs and tax.
Also test your margin. If contribution falls from $200 to $150 per job, you would need 16 extra jobs, rather than 12, to cover $2,400.
Ask yourself: is that work already booked, supported by repeat demand, or still an optimistic forecast?
What if the machine replaces existing equipment?
A replacement may justify itself through savings rather than additional sales.
Compare the expected monthly position with and without the purchase. Consider costs you can realistically avoid, such as equipment hire, subcontracting or repairs.
Be careful with time savings. Saving five hours does not automatically create extra cash. Identify whether those hours reduce a payment, allow additional billable work or provide another measurable benefit.
Check when the money reaches your account
Completing enough jobs does not guarantee the cash will arrive before repayments fall due.
Prepare a monthly cash-flow forecast showing customer receipts, operating payments and finance commitments. Government guidance recommends forecasting cash movements to identify potential shortages.
Allow for commissioning time, maintenance downtime and quieter periods. Use realistic collection dates rather than assuming every invoice is paid immediately.
Match the finance to the work
Lendr360 can help you explore equipment finance and machinery and plant finance, with the asset’s working life and your business’s cash flow considered when discussing the structure.
Bring the equipment quote, expected workload and your cost assumptions. Have your accountant review the wider investment case alongside the finance options.
Planning your next equipment purchase? Call Lendr360 on 1800 870 779.
General information for business-purpose finance only. Examples are illustrative and are not finance quotes or forecasts. Seek accounting advice for your circumstances. Finance is subject to lender assessment, eligibility and terms.
Sources: Business Queensland — Break-even and profit · business.gov.au — Set up a cash flow statement. Example calculations prepared by Lendr360 for illustration purposes only.