Equipment Financing Calculator

Estimate equipment loan payments, total interest, balloon balance, and full amortization. Compare terms, rates, and down payments in seconds.

Loan details

$
$
$
%
years
0 = no balloon
$

A balloon leaves part of the principal to be paid or refinanced at maturity, lowering regular payments.

Results

Payment amount
$0.00
per month
Amount financed
$0.00
Cost – down payment – trade-in
Total interest
$0.00
Over full term
Total cost of financing
$0.00
Principal + interest + balloon
Balloon at maturity
$0.00
Due at end of term
Estimated payoff date
–
Assuming first payment next period

Principal vs. interest

Principal 0% Interest 0%

How this equipment financing calculator works

This tool models a standard fixed-rate equipment loan. You enter the equipment cost, down payment, trade-in value, interest rate, term, and payment frequency. The calculator then:

  • Computes the amount financed (equipment cost minus down payment and trade-in).
  • Applies the loan payment formula to find your periodic payment.
  • Optionally leaves a balloon balance at the end of the term.
  • Builds a full amortization schedule showing principal and interest each period.

Loan payment formula

For a fixed-rate loan with no balloon, the payment is:

Let:

  • \( P \) = amount financed (principal)
  • \( r \) = periodic interest rate (APR ÷ payments per year)
  • \( n \) = total number of payments (years × payments per year)

Then the payment \( A \) is:

\[ A = P \cdot \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

When you enter a balloon payment \( B \) that remains at the end of the term, the calculator adjusts the payment so that the balance after the last regular payment equals \( B \) instead of zero.

What each input means

  • Equipment cost – Total purchase price of the equipment, including any taxes or fees you plan to finance.
  • Down payment – Cash you pay upfront to reduce the amount financed.
  • Trade-in value – Credit for existing equipment applied to the purchase.
  • Interest rate (APR) – Annual percentage rate charged by the lender.
  • Term – Length of the loan in years.
  • Payment frequency – How often you make payments (monthly, quarterly, or annually).
  • Balloon payment – Optional lump sum due at the end of the term.

Choosing the right equipment financing structure

The “best” structure depends on your cash flow, tax situation, and how long you plan to keep the equipment. Use the calculator to test scenarios:

  • Shorter term (3–4 years) – Higher payments, lower total interest, faster equity build-up.
  • Longer term (5–7+ years) – Lower payments, higher total interest, may outlast the useful life of the asset.
  • Higher down payment – Reduces both payment and interest cost, but ties up more cash.
  • Balloon payment – Lowers regular payments but leaves a lump sum to handle at maturity.

Loan vs. lease (high-level)

This calculator models loan-style financing, where you own the equipment and the lender has a security interest. Operating leases and $1 buyout leases have different accounting and tax treatment and may use different pricing structures. For those, use this tool as a rough payment benchmark only.

Frequently asked questions

What credit score do I need for equipment financing?

Requirements vary by lender and equipment type, but many banks and specialty lenders look for business credit plus a personal FICO score in the mid-600s or higher. Strong cash flow, time in business, and collateral can offset weaker credit in some cases.

Can I finance used equipment?

Yes. Many lenders finance used equipment, though maximum terms may be shorter and rates slightly higher than for new equipment. The calculator works the same way—just enter the actual purchase price and terms offered.

Are equipment loan payments tax-deductible?

In many jurisdictions, interest on business loans is deductible, and you may also be able to depreciate or expense the equipment itself (for example, under Section 179 or bonus depreciation in the U.S.). Tax rules are complex—consult a qualified tax professional for advice specific to your situation.

How can I lower my equipment payment?

  • Increase your down payment or trade-in value.
  • Negotiate a lower interest rate.
  • Extend the term (while watching total interest and useful life).
  • Consider a balloon structure if your cash flow will be stronger later.

This calculator is for educational and planning purposes only and does not constitute financial, tax, or legal advice. Actual lender terms may differ.