Is sales tax usually financed or paid up front?

It depends on jurisdiction and lender policy. This calculator lets you model either: finance the tax with the loan or pay up front.

What is a residual/balloon value?

A lump-sum owed at the end of the term (similar to a lease residual) that reduces periodic payments. The unpaid residual is due at maturity.

Which payment frequencies are supported?

Monthly, quarterly, and annual payments. APR is converted to an effective rate per period.

Does this calculator handle prepayments?

This version focuses on standard amortization with an optional end-of-term balloon. Use our prepayment planner for extra principal strategies.

Are results tax or accounting advice?

No. Results are educational estimates. Consult your accountant for depreciation (e.g., Section 179, bonus) and tax treatment.

How accurate is the schedule date spacing?

Dates are spaced by period (monthly/quarterly/annual) for planning visibility; actual lender schedules may vary slightly with business days and cutoffs.

Yes. Set APR to 0 to model promotional financing; payments will be principal only (plus any financed taxes/fees) adjusted for residual if used.

Equipment Loan Calculator - Estimate Payments, Interest & Total Cost

Professional equipment loan calculator for businesses. Estimate monthly, quarterly, or annual payments, total interest, and payoff with optional residual/balloon, sales tax and fees.

Full original guide (expanded)

Audit: Complete

Formula (LaTeX) + variables + units

This section shows the formulas used by the calculator engine, plus variable definitions and units.

Formula (extracted LaTeX)

\[PV = \underbrace{\big(\text{Price} - \text{Down} - \text{TradeIn}\big)}_{\text{Taxable Base}} \;+\; \begin{cases} \text{Tax} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases} \;+\; \begin{cases} \text{Fees} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases}\]

PV = \underbrace{\big(\text{Price} - \text{Down} - \text{TradeIn}\big)}_{\text{Taxable Base}} \;+\; \begin{cases} \text{Tax} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases} \;+\; \begin{cases} \text{Fees} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases}

Formula (extracted LaTeX)

\[\text{Payment} = \frac{\big(PV - \frac{B}{(1+i)^n}\big)\, i}{1 - (1+i)^{-n}}\]

\text{Payment} = \frac{\big(PV - \frac{B}{(1+i)^n}\big)\, i}{1 - (1+i)^{-n}}

Formula (extracted LaTeX)

\[\text{Payment} = PV \cdot \frac{i}{1-(1+i)^{-n}}\]

\text{Payment} = PV \cdot \frac{i}{1-(1+i)^{-n}}

Formula (extracted text)

We compute the amount financed \(PV\) from purchase inputs, then apply the annuity formula with optional end-of-term residual/balloon \(B\). Let \(i\) be the rate per period and \(n\) the number of periods. Amount financed: \[ PV = \underbrace{\big(\text{Price} - \text{Down} - \text{TradeIn}\big)}_{\text{Taxable Base}} \;+\; \begin{cases} \text{Tax} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases} \;+\; \begin{cases} \text{Fees} & \text{if financed}\\ 0 & \text{if paid up front} \end{cases} \] Per-period rate: \(\; i = \dfrac{\text{APR}}{\text{periods per year}}\) Payment with balloon \(B\) due at maturity: \[ \text{Payment} = \frac{\big(PV - \frac{B}{(1+i)^n}\big)\, i}{1 - (1+i)^{-n}} \] For \(B=0\) this reduces to the standard annuity: \[ \text{Payment} = PV \cdot \frac{i}{1-(1+i)^{-n}} \] Interest each period: \(\text{Interest}_t = \text{Balance}_{t-1}\cdot i\), Principal: \(\text{Principal}_t = \text{Payment} - \text{Interest}_t\).

Variables and units

P = principal (loan amount) (currency)
r = periodic interest rate (annual rate ÷ payments per year) (1)
n = total number of payments (years × payments per year) (count)
M = periodic payment for principal + interest (currency)
T = property tax (annual or monthly depending on input) (currency)

Sources (authoritative):

Home — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/
Finance — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/finance
Loans & Debt — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/subcategories/finance-loans-debt
Loan Amortization Schedule — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/loan-amortization
APR Calculator — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/apr
Loan Prepayment Planner — calcdomain.com · Accessed 2026-01-19
https://calcdomain.com/loan-prepayment

Changelog

Version: 0.1.0-draft
Last code update: 2026-01-19

0.1.0-draft · 2026-01-19

Initial audit spec draft generated from HTML extraction (review required).
Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
Confirm sources are authoritative and relevant to the calculator methodology.

Verified by Ugo Candido on 2026-01-19
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Formulas

(Formulas preserved from original page content, if present.)

Version 0.1.0-draft

Citations

Add authoritative sources relevant to this calculator (standards bodies, manuals, official docs).

Changelog

0.1.0-draft — 2026-01-19: Initial draft (review required).