Equipment Loan Calculator: Monthly Payment & Total Interest
Work out the monthly payment and total interest on a loan to finance business equipment — machinery, vehicles, or technology.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $50k · 9.0% · 5-year | $1,037.92 | $12,275.07 | $62,275.07 |
| $20k · 10.5% · 3-year | $650.05 | $3,401.76 | $23,401.76 |
| $150k · 8.0% · 7-year | $2,337.93 | $46,386.30 | $196,386.30 |
| $80k · 9.5% · 6-year | $1,461.98 | $25,262.22 | $105,262.22 |
How This Calculator Works
Enter the amount financed — the equipment cost after any down payment — the APR, and the loan term. The equipment usually secures the loan. The calculator applies the fixed-rate amortization formula to produce one constant monthly payment and a full year-by-year breakdown.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
Financing $50,000 of equipment at 9% APR over 5 years gives a monthly payment of about $1,038. Across the loan you repay roughly $62,280, so interest adds close to $12,280 to the equipment's cost.
Key Insight
Match the loan term to the equipment's useful life. Financing a machine over five years when it will serve for ten spreads the cost sensibly; financing it over ten years when it lasts five means paying for equipment after it is gone.
Frequently Asked Questions
Is an equipment loan secured?
Usually yes — the equipment itself serves as collateral. That keeps the rate below unsecured borrowing but lets the lender repossess the equipment on default.
What term should an equipment loan have?
A common guideline is to match the term to the equipment's useful life, so the asset is still productive while it is being paid for.
What is the amount financed?
Enter the equipment cost after any down payment or trade-in. Taxes, delivery, and installation may be included if the lender finances them.
How does equipment financing differ from leasing?
A loan builds ownership and ends with the equipment yours. A lease is rental, often with lower payments but no ownership unless a buyout is exercised.
Can interest and depreciation be deducted?
Business loan interest and equipment depreciation are often deductible, sometimes with accelerated options. Confirm the current rules with a tax professional.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for interest rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Payments use the standard fixed-rate amortization formula. The calculator assumes a fixed APR on the amount financed and excludes any balloon payment or residual value at term end.
Written by Ugo Candido · Last updated May 17, 2026.