Equipment Loan Calculator
Use this free equipment financing calculator to estimate monthly payments, total interest and the cost of buying equipment through a loan or lease. Enter your purchase price, down payment, annual rate and term. Loan mode also shows an amortization schedule and early payoff estimates.
Calculate your equipment paymentEquipment Financing Calculator
Use this equipment finance calculator to compare a loan with common lease structures. Change the purchase price, down payment, annual rate, or term to see how the payment and total cost change.
The starting example uses a 10% down payment. Change the assumptions to compare offers. Calculator input ranges are not financing limits or qualification requirements.
Estimated monthly loan payment
- Amount financed
- Modeled cash due at signing
- Total interest
- Total scheduled loan payments
- End purchase option
- Outlay without purchase, before return charges
- Financing cost before other charges
- Total paid, including down payment
Estimates are not offers or approval. The 14% starting annual interest rate is not a fee-inclusive APR or a promise of the rate available to a 550-FICO applicant. The example uses a $100,000 purchase, $10,000 down payment, and 60-month term. Loan mode uses fixed interest and monthly payments in arrears. Lease modes use an assumed financing rate and discounted end value; actual lease pricing may differ. Taxes, insurance, deposits, maintenance, return charges, and other costs outside the modeled payments are excluded. Totals use unrounded payments; the final payment can vary by cents. Seasonal schedules, TRAC adjustments, and interest-only periods are not modeled.
Explore early payoff and the payment schedule
This standard-loan illustration assumes interest stops when principal is repaid. A fixed-charge equipment finance agreement or lease may require different payoff amounts. Ask for a written payoff quote.
- Remaining principal owed
- Future interest avoided
- Net savings after payoff charge
- Total outlay with early payoff
View payment-by-payment breakdown
| Payment | Opening balance | Payment amount | Interest | Principal | Closing balance |
|---|
How to use the equipment loan calculator
- Choose a loan or lease. Select Equipment loan for fixed monthly payments that repay the balance in full. If you are comparing a lease, choose the option that matches its final purchase terms.
- Enter the equipment price and down payment. The difference is the amount financed. In lease modes, the upfront entry is a cost reduction, not a refundable security deposit.
- Enter the annual interest rate and number of months. Five years is 60 months; seven years is 84 months. If a lease quote gives only a payment or factor, do not enter that figure as an annual rate. Ask the provider for the pricing details.
- Check the final purchase obligation. For a fixed purchase-option, FMV or mandatory-purchase lease, enter the end value as a percentage of the original equipment price.
- Compare the totals. Look at cash due at signing, all scheduled payments and any end purchase amount. In loan mode, open the early-payoff section to view the payment schedule.
The inputs update the result automatically. Reset example restores the original figures. For eligibility, documentation and financing options through Excel's partners, see our equipment financing guide.
What would a $100,000 equipment purchase cost per month?
With $10,000 down, you would finance $90,000. At a fixed 14% annual interest rate over five years, the estimated payment is $2,094.14 per month. This is an illustration before fees and other purchase costs, not an offer.
The first payment includes $1,050 in interest and about $1,044.14 in principal. Interest is calculated on the unpaid balance each month, so the interest portion declines as you repay principal. The $135,648.55 total includes the $10,000 down payment once. Totals use unrounded payments; a lender may adjust the last payment for rounding.
Monthly payments for common equipment loan amounts
These examples use the amount borrowed after any down payment, with 14% fixed annual interest, 60 monthly payments and no fees or balloon. A $100,000 loan is different from the $100,000 purchase with $10,000 down shown above.
| Amount financed | Monthly payment | Interest over 60 months |
|---|---|---|
| $25,000.00 | $581.71 | $9,902.38 |
| $50,000.00 | $1,163.41 | $19,804.75 |
| $100,000.00 | $2,326.83 | $39,609.51 |
| $250,000.00 | $5,817.06 | $99,023.76 |
Compare 3-, 5-, 7- and 10-year equipment loan payments
A longer repayment term lowers the monthly payment but increases interest when the financed amount and rate stay the same. Here is the same $90,000 loan at 14% annual interest across four terms.
| Repayment term | Monthly payment | Total interest |
|---|---|---|
| 3 years (36 months) | $3,075.99 | $20,735.52 |
| 5 years (60 months) | $2,094.14 | $35,648.55 |
| 7 years (84 months) | $1,686.60 | $51,674.49 |
| 10 years (120 months) | $1,397.40 | $77,687.75 |
Excel's advertised equipment financing terms run up to five years. The seven- and ten-year rows show how the math changes if you have a separate offer for a longer term. They are not advertised Excel programs.
Compare the repayment period with how long you expect to use the equipment. A lower payment may leave you repaying a machine after it needs replacement.
How equipment financing payments are calculated
Standard equipment loan formula
The calculator subtracts the down payment from the purchase price, then uses the fixed-payment formula:
Monthly payment = P × r ÷ [1 − (1 + r)−n]
P is the amount financed, r is the annual interest rate divided by 12 and expressed as a decimal, and n is the number of monthly payments. At 0% interest, payment is simply P ÷ n. Loan mode assumes payments at the end of each month and no balloon payment.
View your equipment loan amortization schedule
Open “Explore early payoff and the payment schedule,” then “View payment-by-payment breakdown.” Each row shows the opening balance, payment, interest, principal and closing balance. The schedule is available for loan mode; it is not a lease payoff statement.
For more detail, read how to calculate an amortization schedule. If you need variable-rate or interest-only loan scenarios, use our business loan calculator.
Early payoff
The slider models paying the remaining principal immediately after the selected monthly payment. Add any separate payoff charge to see its effect on savings. Principal you repay early is still owed; only avoided interest, less the added charge, counts as savings here.
This assumes future interest stops when principal is repaid. A fixed-charge equipment finance agreement or lease may have a different payoff formula. Ask the provider for a written payoff quote before making the final payment.
Equipment lease calculator: compare buyout options
A lease payment can look lower because part of the equipment's value is left until the end. Compare what you pay to use it with what you would pay to own it.
| Mode | What this calculator includes | What to check in the agreement |
|---|---|---|
| $1 buyout lease | Monthly payments plus a separate $1 end purchase. | Ownership transfer and any other charges. |
| Fixed purchase-option lease | A fixed optional purchase amount based on the original price. | Whether return is permitted and what it costs. |
| Fair market value lease | An assumed end value entered by you. | The actual value is unknown today; the estimate is not an appraisal. |
| Mandatory purchase (PUT) lease | A required final purchase added to scheduled payments. | The final obligation is not optional. |
The calculator allows for the equipment value left at the end of the lease, then estimates the monthly payment using your assumed rate. Choosing a first payment at signing moves the payment schedule forward by one month. It increases cash due at signing but does not add another payment.
FMV and $1 buyout structures have different end-of-term choices, as explained in CHG-MERIDIAN's lease comparison. Your agreement controls ownership, renewal, notice deadlines and return conditions. The calculator does not determine tax or accounting classification.
Calculating payments for heavy equipment and farm machinery
You can use this commercial equipment loan calculator for an excavator, forklift, tractor, commercial oven or manufacturing machine. The formula is the same; the price and financing terms change. For used equipment, enter the seller's price and the terms you have been offered. The calculator cannot predict an interest rate from a machine's age or condition.
For farm equipment, this tool calculates monthly installments. It does not model annual or seasonal payments timed around harvest. Our farm equipment financing guide explains options to discuss with a provider. For kitchen purchases, see restaurant equipment financing.
Costs to add to your purchase budget
The estimate excludes taxes, documentation fees, insurance, maintenance, delivery, installation, deposits and return charges unless a cost is included in the price you enter. Keep cash-paid costs separate, and do not count a cost twice. The displayed interest rate is not a fee-inclusive APR. No tax deduction or resale proceeds are subtracted from the estimate.
Equipment financing calculator questions
Why is my lender's payment different from this estimate?
First check that both calculations use the same amount financed, annual interest rate, payment count and first payment date. Your quote may include financed fees, taxes, advance payments or a final purchase amount. This calculator uses equal monthly periods; daily interest and irregular payment dates can also change the result. Ask the provider to reconcile the payment with its written schedule.
Should I enter the interest rate or APR?
In loan mode, enter the contractual annual interest rate. An APR may include fees that this payment formula does not model. Entering APR as the interest rate can produce a different payment from the quoted loan. In lease mode, the annual rate is an assumption used to compare scenarios, not a conversion from a lease factor.
How much is a $50,000 equipment loan payment?
For $50,000 actually financed at 14% annual interest over 60 months, the estimated payment is $1,163.41 a month, before fees. Enter Equipment price of $50,000 and Down payment of $0 to reproduce that loan amount. A $50,000 purchase with a down payment produces a smaller loan.
Can I calculate an equipment loan with no down payment?
Yes. Enter zero in the down-payment field. That only models the payment; it does not establish that no-money-down financing is available. Other costs may still be due at signing.
Does a larger down payment reduce interest?
With the same rate and term in standard loan mode, yes. A larger down payment reduces the amount financed, lowering both the monthly payment and total interest. Compare that saving with how much cash the business needs for other expenses.
Is a lease always cheaper than an equipment loan?
No. Compare cash due upfront, all monthly payments, the end purchase amount and other fees. A lease with a lower payment may leave a larger ownership cost at the end. Returning equipment also leaves you without the asset and may involve return charges.
Can I use this for a used heavy equipment loan?
Yes, if the offer uses the payment structure modeled here. Enter the used equipment's price and the actual rate, down payment and term. The estimate does not confirm that the equipment, seller or borrower qualifies.
Does the calculator include a balloon payment?
Standard loan mode fully repays the principal and has no balloon. The lease modes model an end purchase amount. Do not use a lease result as a substitute for a lender's balloon-loan schedule.
Is the example rate the rate I will receive?
No. The example is a starting assumption, not a quote or approval. Credit, business finances, equipment and the provider's underwriting affect the offered terms. Excel Capital arranges financing through partners; the financing provider sets the offer.
Explore the business loan calculator collection or review equipment financing requirements and documents.