Equipment Financing Calculator

How to Use the Equipment Financing Calculator

Whether you need yellow iron, delivery vehicles, or restaurant ovens, this calculator helps you estimate the true monthly cost of acquiring new equipment. To get started:

• Enter the total invoice cost of the equipment you wish to purchase.
• Adjust the down payment slider. (Many lenders offer 100% financing, but putting 10% to 20% down or trading in old equipment lowers your monthly payment).
• Select a term length. As a rule of thumb, your loan term should not exceed the useful lifespan of the equipment.

Understanding Equipment Financing Terms

Equipment loans are unique because the asset you are buying acts as the collateral. Here are the key terms to know:

• Equipment Cost: The total purchase price of the machinery, vehicles, or software. Soft costs like delivery and installation can sometimes be rolled into this amount.
• Down Payment / Trade-In: The upfront cash you pay, or the value of old equipment you trade in to the dealer. This reduces your total financed amount.
• Financed Amount (Principal): The actual size of your loan after your down payment is subtracted.
• Estimated Term: Typically ranges from 12 to 84 months. Lenders map the term to the equipment type. A computer server may get a 3-year term, while a bulldozer may get a 7-year term.

The Hidden Benefit: Section 179 Tax Deductions

One of the biggest advantages of financing equipment is the IRS Section 179 tax deduction. It allows businesses to deduct the full purchase price of qualifying equipment during the tax year it was purchased, even if you financed it.

• Instant Write-off: Instead of depreciating the equipment over 5 or 10 years, you can often write off the entire cost on your current year’s tax return.
• Cash Flow Positive: Because you only pay a fraction of the cost upfront (or zero down), the tax savings you receive can sometimes exceed the total loan payments you make in the first year.
• Note: Always consult your CPA or tax professional to see exactly how Section 179 applies to your business.

What the Equipment Calculator Does (and Doesn’t) Do

• Estimates are not offers. Your exact rate will depend on your time in business, personal credit score, and the condition of the equipment (new vs. used).
• Rates vary by asset type. Heavy machinery that holds its resale value typically secures lower interest rates than specialized software or highly customized equipment.
• Taxes and fees. This calculator does not account for state sales tax, delivery fees, or lender origination fees that may be added to your final loan contract.

Ready to Upgrade Your Business?

Don’t let outdated equipment hold you back. Because the equipment secures the loan, approval rates are high and funding is incredibly fast. Apply today to secure the capital you need to scale your operations.