Equipment Loan Calculator

Finance business equipment purchases with predictable monthly payments. Equipment serves as collateral for competitive rates.

Show this tool on your website

Equipment Loan Details

$
0%20%20%
%

Compare Loan Terms

2 years
Monthly:$3,068.26
Total interest:$6,138
Save vs longest:$16,155
3 years
Monthly:$2,130.81
Total interest:$9,209
Save vs longest:$13,084
5 yearsCurrent
Monthly:$1,384.87
Total interest:$15,592
Save vs longest:$6,701
7 years
Monthly:$1,068.96
Total interest:$22,293

Loan Summary

Monthly Payment

$1,384.87

5 years at 8.50% APR

Loan Details

Equipment Price:$75,000
Down Payment (10%):-$7,500
Amount Financed:$67,500
Interest Rate:8.50% APR
Loan Term:5 years (60 months)

Total Cost

Total of 60 payments:$83,091.95
Total Interest Paid:$15,591.95
Down Payment:$7,500
Total Amount Paid:$90,591.95

First Year Payment Breakdown

MonthPrincipalInterestBalance
1$906.74$478.13$66,593
2$913.16$471.7$65,680
3$919.63$465.23$64,760
4$926.15$458.72$63,834
5$932.71$452.16$62,902
6$939.31$445.55$61,962
7$945.97$438.9$61,016
8$952.67$432.2$60,064
9$959.41$425.45$59,104
10$966.21$418.66$58,138
11$973.05$411.81$57,165
12$979.95$404.92$56,185

Early payments are mostly interest. Principal portion increases over time.

Principal vs Interest Over Time

Term Comparison

Loan Balance Over Time

💡 Tips

  • Equipment itself serves as collateral
  • Section 179 tax deduction may apply
  • Consider useful life of equipment when choosing term
  • Rates typically lower than unsecured business loans
  • Can often finance 100% of equipment cost

⚠️ Important Considerations

  • Equipment depreciates faster than loan balance decreases
  • Early payoff may not be cost-effective
  • Equipment may become obsolete before loan ends
  • Maintenance and insurance costs are additional

Frequently Asked Questions

Common questions about the Equipment Loan Calculator

Manufacturing equipment, vehicles, computers, furniture, machinery, medical equipment, restaurant equipment, and more. Generally any tangible business asset.

⚠️ Important Disclaimer

This Equipment Loan Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.

The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.

This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:

  • Certified Financial Planner (CFP)
  • Certified Public Accountant (CPA) for tax matters
  • Licensed attorney for legal matters
  • Registered Investment Advisor (RIA) for investment decisions

Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.

No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.