01
Enter the Equipment Cost
Add the purchase price, cash down payment and any trade-in value being applied.
Business and Lending
Equipment Loan Calculator
Estimate equipment financing payments, interest, taxes, lender fees, balloon balance, payoff structure and cash-flow coverage before purchasing business machinery.
Equipment-focused financing
Cash-flow coverage analysis
Balloon payment estimate
Equipment Financing Details
Enter the purchase price, financing terms, trade-in value, taxes and lender fees.
Equipment Financing Estimate
Review your estimated payment, financing costs, balloon balance and cash-flow position.
Required monthly payment
$1,996.00
Principal and interest before extra payments
Planned monthly payment
$2,246.00
Includes the optional extra payment
Projected balloon balance
$0.00
Remaining at loan maturity
Amount financed
$102,000.00
Total interest
$17,000.00
Interest saved
$1,500.00
Total lender fees
$2,250.00
Estimated upfront cash
$20,000.00
Annual planned debt service
$26,952.00
Sales tax amount
$7,475.00
Scheduled balloon
$10,200.00
Total loan payments
$119,000.00
Total financing cost
$19,250.00
Payoff structure
5 years
Cash-flow coverage
1.56
Business equity contribution
$30,000.00
Number of monthly payments
60
The entered equipment cash flow provides estimated
coverage above 1.25 times annual debt service.
Equipment financing terms may include liens,
insurance requirements, personal guarantees,
variable rates, prepayment penalties or tax
treatment that differs from this estimate.
Equipment Financing
What Is an Equipment Loan?
Understand how businesses finance machinery, vehicles, technology and other essential operating assets.
An equipment loan provides financing for business assets such as construction machinery, manufacturing equipment, commercial vehicles, medical devices, agricultural machinery and computer systems.
The purchased equipment commonly serves as collateral for the financing. The business repays the loan through regular principal and interest payments over an agreed term. Depending on the agreement, a remaining balloon balance may become due at the end of the term.
A larger down payment or valuable trade-in can reduce the amount financed. Interest rates, fees, equipment age, borrower credit, time in business and the useful life of the equipment can all affect the lender's terms.
How It Works
How to Use the Equipment Loan Calculator
Estimate the complete financing structure in four straightforward steps.
02
Set Financing Terms
Enter the interest rate, loan term and any balloon payment expected at maturity.
03
Add Taxes and Fees
Include sales tax, origination costs and documentation fees, then choose whether to finance or pay them upfront.
04
Review the Results
Compare the monthly payment, interest, balloon balance, upfront cash and cash-flow coverage.
Financing Measurements
Important Equipment Loan Factors
Review the measurements that affect affordability and the total cost of financing business equipment.
Amount Financed
The equipment cost remaining after the down payment and trade-in, plus financed taxes and lender fees.
Balloon Payment
A remaining principal balance that may become due when the regular equipment loan term ends.
Cash-Flow Coverage
The estimated annual cash flow generated by the equipment divided by annual planned loan payments.
Extra Payment Savings
Additional principal payments can reduce interest, lower the final balloon and potentially repay the financing before maturity.
Repayment Schedule
Equipment Loan Amortization Preview
Review how the early monthly payments are divided between principal and interest.
| Payment | Payment Amount | Principal | Interest | Remaining Balance |
|---|
Frequently Asked Questions
Equipment Loan Calculator FAQs
Helpful answers about equipment payments, taxes, trade-ins, fees and balloon financing.
The payment is calculated using the amount financed,
annual interest rate, repayment term and any balloon
balance due at maturity. Each monthly payment includes
interest and a portion of the outstanding principal.
A trade-in reduces the equipment cost that must be
covered by cash or financing. Depending on local tax
rules, it may also reduce the amount subject to sales
tax.
Some lenders allow sales tax to be included in the
financed balance, while others require it to be paid
upfront. The calculator provides both options.
A balloon payment is a remaining principal amount due at
the end of the regular repayment term. It lowers the
scheduled monthly payment but creates a larger final
payment.
Extra payments reduce the outstanding principal. This
can lower or eliminate the projected balloon balance,
reduce total interest and potentially repay the loan
before its scheduled maturity.
Upfront cash includes the entered down payment, plus
sales tax and lender fees when those costs are selected
to be paid upfront. The trade-in is shown separately as
a business equity contribution.
No. This calculator estimates financing payments and
costs. It does not estimate depreciation, resale value,
tax deductions, maintenance, insurance or operating
expenses.
No. The result is an educational estimate. Actual
approval depends on lender underwriting, business
credit, personal credit, equipment value, cash flow,
collateral and other eligibility requirements.
Important: This equipment loan calculator
is provided for general informational and planning purposes
only. It does not constitute a financing offer, approval,
accounting advice, tax advice, legal advice or financial
advice. Actual lender terms and costs may differ.