Equipment Financing Calculator

Calculate equipment financing options, compare loan vs. lease costs, and analyze payment structures. Make informed decisions about business equipment purchases and financing alternatives.

Equipment Details

Equipment Cost ($) *

Down Payment ($)

Optional upfront payment

Trade-in Value ($)

Value of equipment being traded

Equipment Useful Life (Years)

Expected useful life for depreciation

Financing Options

Interest Rate (%) *

Loan Term (Years) *

Loan Fees ($)

Origination, processing fees

Residual Value ($)

Expected value at loan end

Lease Rate (%) *

Lease Term (Years) *

Lease End Value ($)

Purchase option at lease end

Lease Fees ($)

Documentation, security deposit

Equipment Financing Results

Monthly Payment

Total Cost

Total Interest/Fees

Amount Financed

How the Equipment Financing Calculator Works

Enter Equipment Details

Input the equipment cost, down payment, trade-in value, and expected useful life to establish the financing baseline.

Choose Financing Type

Select between equipment loan or lease options, each with different terms, rates, and ownership implications.

Configure Financing Terms

Set interest rates, loan/lease terms, fees, and residual values based on your financing options and lender terms.

Compare Financing Options

Analyze monthly payments, total costs, and ownership benefits to choose the best equipment financing solution for your business.

Frequently Asked Questions

What's the difference between equipment loans and leases?

Equipment loans provide ownership of the equipment with fixed monthly payments and potential tax benefits through depreciation. Equipment leases offer lower monthly payments, easier upgrades, and maintenance packages, but you don't own the equipment unless you exercise a purchase option.

How much down payment is typically required for equipment financing?

Down payments for equipment financing typically range from 10-30% of the equipment cost, depending on the lender, equipment type, and your creditworthiness. Some lenders offer 100% financing for qualified borrowers, while others may require larger down payments for specialized equipment.

What factors affect equipment financing rates?

Equipment financing rates are influenced by your credit score, business financial health, equipment type and age, loan term, down payment amount, and current market conditions. New equipment typically qualifies for better rates than used equipment.

Can I deduct equipment financing payments on my taxes?

For equipment loans, you can typically deduct the interest portion of payments and depreciate the equipment. For leases, you can usually deduct the full lease payment as a business expense. Consult with a tax professional for specific guidance based on your situation.

What happens at the end of an equipment lease?

At lease end, you typically have three options: return the equipment, purchase it for the predetermined residual value, or extend the lease. Some leases include a $1 buyout option, while others base the purchase price on fair market value.