Equipment Financing Calculator
Estimate Payments & Compare Lease vs. Buy
This tool helps you understand your equipment financing options by estimating loan payments, interest, and total cost. Perfect for small businesses, construction firms, and manufacturers.
This calculator uses the loan amortization formula to estimate monthly payments, interest, and total financing cost for business equipment loans.
Monthly Payment = P × (r(1+r)^n) / ((1+r)^n – 1)
Where P = Principal, r = Monthly Rate, n = Number of Months
Financing
- • You own the equipment
- • Higher monthly payments
- • Tax depreciation benefits
- • Best for long-term assets
Leasing
- • You rent temporarily
- • Lower monthly payments
- • Often includes maintenance
- • Best for short-term use
Input Parameters:
- Equipment Cost: $100,000
- Down Payment: $10,000
- Term: 5 years
- Interest Rate: 7%
Results:
- Monthly Payment: $1,782
- Total Interest: $7,950
- Total Cost: $97,950
What is equipment financing?
Equipment financing is a loan used specifically to purchase business equipment. The equipment itself often serves as collateral.
Is it better to lease or buy equipment?
It depends on your business needs. Leasing offers lower payments and flexibility, while buying builds equity and offers tax benefits.
What are typical interest rates for equipment loans?
Rates typically range from 5% to 20% depending on credit score, business history, and equipment type.
Can I finance used equipment?
Yes, many lenders offer financing for used equipment, though terms may be less favorable than for new equipment.
How do I qualify for equipment financing?
Lenders typically consider credit score, business revenue, time in business, and the equipment's value.