# Equipment Financing Calculator: The Payment Against the Life of the Asset

Type the equipment cost, the down payment and the rate and term from a quote, and the tool returns the monthly payment, the cash up front and what the machine costs in all, as a loan or as a lease. The useful question is whether the schedule ends before the machine stops earning. The figures are arithmetic, never an offer.

[See your financing options](https://capitalgurus.com/apply/) · Or call [(725) 425-4307](tel:+17254254307)

Soft credit pull only, no obligation.

Rates, factor rates, fees and terms are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Figures on this page are illustrative ranges from providers in our network, not offers.

## In this section

- [Compare: Calculators](https://capitalgurus.com/calculators/)
- [Compare: Equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/)

## Run the numbers

Enter the cost on your vendor quote, what you put down and a term that ends while the machine is still earning. Switch to Lease to set a lease beside the loan.

- Down payment, trade-in and sales tax, financed or paid up front
- A loan or a lease, compared side by side
- Nothing to sign up for, and nothing here is quoted to you

Two modes, equipment loan and lease. Both take:

- Equipment cost
- Down payment, in percent or dollars
- Trade-in value (optional)
- Sales tax (%, optional), financed or paid up front
- Example rate — enter the rate from your offer (%)
- Term (months)

The lease adds the end-of-lease option (fair market value with a residual, or a $1 buyout) and whether the first payment is made at signing, and shows the loan and the lease side by side.

Example: equipment cost $150,000, 10% down, example rate 9%, 60 months. As a loan: estimated monthly payment $2,802.38; amount financed $135,000; total repaid $168,143; interest $33,143. As a lease at a 10% residual with the first payment at signing: $2,584.12 a month.

### Three illustrative cases

| Case | Financed | Rate | Monthly | Interest |
| --- | --- | --- | --- | --- |
| $40K, 10% down, 36 months | $36,000 | 9% | $1,144.79 | $5,212 |
| $150K, 10% down, 60 months | $135,000 | 9% | $2,802.38 | $33,143 |
| $250K, 20% down, 72 months | $200,000 | 9% | $3,605.11 | $59,568 |

Illustrative example, not an offer.

[See your financing options](https://capitalgurus.com/apply/) · [See equipment financing options](https://capitalgurus.com/loans-and-financing/equipment-financing/)

The starting figures are round numbers chosen so the tool has something to show. Replace them with the figures on your vendor quote and your written offer.

Assumptions behind the arithmetic: A fixed annual rate, monthly payments and no prepayment. On the loan, the down payment and trade-in come off the cost, sales tax is either added to the amount financed or paid up front, and the first payment falls a month after funding. On the lease, the payment covers the cost less the present value of the residual, with sales tax on each payment as most states charge it, and the first payment either at signing or a month later; the cost to own adds the residual you would pay to buy the equipment at the end. Where an agreement differs from these assumptions, the agreement is what governs.

## At a glance

- **Where the rate comes from**: The provider funding the purchase, in a written quote — not from this page
- **Amounts our network considers**: up to $500K on the application alone; up to $5M with full documentation, depending on the funding provider
- **Terms our network considers**: terms up to 10 years, depending on the funding provider
- **Who sets the real figures**: The funding provider, in the agreement you sign

## Pick the term against the life of the asset

The first decision is not the rate. It is whether the schedule ends before the machine stops earning: pick the shortest schedule your cash flow can carry inside its productive years.

| Term | Monthly payment | Cost of the money |
| --- | --- | --- |
| 3 years | $2,384.98 | $10,859 |
| 5 years | $1,556.88 | $18,413 |
| 7 years | $1,206.68 | $26,361 |

$75,000 at 9% a year, no fee. Illustrative example, not an offer. Worked out with the calculator's own arithmetic.

**Short-life kit.** Computers, point-of-sale systems and diagnostic gear age fast and want short schedules. A payment that outlives the asset leaves you paying for something you have already replaced.

**Long-life kit.** A press, a trailer, a machine tool or a walk-in still works and resells years later, so it takes a longer schedule. Some products run to terms up to 10 years, depending on the funding provider; [business loan terms explained](https://capitalgurus.com/guides/business-loan-terms/) covers the rest.

## What belongs in the amount financed

Most people type the invoice total and stop. The amount financed is usually larger, because getting a machine working costs more than buying it.

**In the boxes**

- The equipment line on the invoice
- The soft costs your provider agreed to finance
- A documentation or lien fee, when the provider adds it to the amount

**Soft costs to ask about first**

- Freight, rigging and crane time
- Installation, wiring and calibration
- Training and the extended warranty
- Sales tax: financed or up front; set the tool to match

Some providers finance the whole installed cost, some a share, some only the machine. Ask before you choose one, then enter the figure you were told. [How to finance new equipment](https://capitalgurus.com/blog/how-to-finance-new-equipment/) covers the paperwork.

## A lease and a purchase do not produce comparable numbers

Their payments buy different things, so set the totals side by side, not the payments: switch the calculator to Lease and it does that for the same equipment and rate.

**A financed purchase.** A balance, a rate and a level payment that retires it over the term. The provider holds a lien on the equipment until the balance is paid; then it is yours, with nothing left to pay. Works for: One named asset, new or used, with the provider paying the vendor.

**A lease.** You pay to use the asset and the leasing company holds title. What you owe at the end depends on the contract: a nominal buyout, a fair-market-value price, a fixed option, or nothing if you hand it back. To compare: The Lease tab adds every payment and the buyout if you will own it; add any return costs yourself.

[Equipment leasing](https://capitalgurus.com/loans-and-financing/equipment-financing/leasing/) explains the structures; [Leasing vs Buying Business Equipment](https://capitalgurus.com/blog/leasing-vs-buying-business-equipment/) works through cases.

## The machine is the collateral

The provider pays the vendor, files a lien and normally requires the equipment insured while the balance runs. Specialised kit with a thin resale market is harder to place than a late-model truck, and used kit with hours on it tends to get a shorter schedule. None of that shows in the payment box, and all of it moves the offer.

- [Equipment financing](https://capitalgurus.com/loans-and-financing/equipment-financing/): How a financed purchase works
- [Equipment financing for startups](https://capitalgurus.com/loans-and-financing/equipment-financing/startups/): Often reachable, as the asset secures it
- [Equipment financing for construction](https://capitalgurus.com/industries/construction/equipment-financing/): Excavators, loaders and trucks
- [Equipment financing for manufacturers](https://capitalgurus.com/industries/manufacturing/equipment-financing/): Presses, CNC machines and production lines

## Section 179, honestly

**What it may change.** What you may deduct: Section 179 and bonus depreciation let a business deduct equipment cost up front, within limits and conditions set by your return, income and the year the asset enters service.

**What it does not change.** The payment shown here: a deduction reduces tax, not the payment. Leases and financed purchases are treated differently; a lease that ends in ownership may not be fully deductible as rent.

[Can business loans be written off](https://capitalgurus.com/blog/can-business-loans-be-written-off/) covers the interest side. For your own return, consult your tax advisor.

## What the tool does not know

It works out the figures you type. A provider decides the amount, the rate and the term after reading your file, so ask three questions of every equipment quote:

1. Does the schedule end before the machine stops earning?
2. Which soft costs will the provider finance?
3. What happens to the total if you pay it off early?

Then confirm what the arithmetic leaves out: an advance payment taken at signing, insurance, a titling fee on a vehicle, an inspection on used kit, and whether a personal guarantee is required.

[See your financing options](https://capitalgurus.com/apply/). Capital Gurus is a broker. An application takes about 5 minutes on three months of bank statements plus the vendor quote, with a soft credit pull only. Same-day decisions are available from some providers, subject to provider approval and document turnaround.

## Keep reading

### Related pages

- [All business loan calculators](https://capitalgurus.com/calculators/)
- [Business loan calculator](https://capitalgurus.com/calculators/business-loan-calculator/)
- [Business acquisition loan calculator](https://capitalgurus.com/calculators/business-acquisition-loan-calculator/)
- [Equipment financing for landscaping companies](https://capitalgurus.com/industries/landscaping/equipment-financing/)
- [Working capital financing](https://capitalgurus.com/loans-and-financing/working-capital/)
- [Business loan interest rates](https://capitalgurus.com/guides/business-loan-interest-rates/)

## Frequently asked questions

### What is the monthly payment on $100,000 of equipment?

It depends on the rate, the term and what you put down. Type 100,000 as the equipment cost, then the down payment, rate and term from your quote: the payment, the cash up front and the total follow at once. A longer term lowers the payment and raises the total, so check the schedule still ends before the machine stops earning.

### Is it better to lease or finance equipment?

Finance it with a loan when you plan to keep it for years and want to own it: you build equity, and Section 179 or bonus depreciation may apply, though consult your tax advisor. Lease it when the payment needs to be lower or the equipment ages quickly and you want to upgrade at the end. Switch the calculator to Lease to see both side by side; the lessor sets the lease terms.

### Do you need a down payment for equipment financing?

Not always. Some providers finance the whole cost, others ask for a share up front, and a used machine, a thin resale market or a new business tends to raise the ask. A down payment lowers the amount financed and the payment with it. Set it in the calculator as a percentage or in dollars to see the difference.

### What credit score do you need for equipment financing?

Some providers in our network consider equipment financing from a score of 525, because the equipment itself secures it. Larger amounts ask more: up to $500K on the application alone, and up to $5M with full documentation, with stronger credit. Time in business and revenue still count, and meeting a minimum does not guarantee an offer; the provider sets the terms.

### What term should I choose for equipment?

Work from the asset, not the payment. Estimate how many productive years the equipment has in your operation, then pick the shortest schedule your cash flow can carry inside that. A schedule that outlives the machine leaves you paying for something you have already replaced. Used equipment with hours on it usually attracts a shorter term than new.

### Should I enter the invoice total or the delivered cost?

Whatever the provider has agreed to finance, which is often more than the equipment line. Freight, rigging, installation, wiring, calibration, training and warranties are soft costs, and providers treat them differently: some finance the full installed cost, some a share, some only the machine. Ask first, then enter the figure you were told.

### Does the Section 179 deduction change my payment?

No. The payment is set by the amount, the rate and the term in your agreement. Section 179 and bonus depreciation change what you may deduct, and the limits and conditions depend on your return, your income and the year the asset is placed in service. A lease and a financed purchase are not treated alike. Consult your tax advisor.

### Does the calculator include insurance and the lien fee?

No. A documentation or lien fee belongs in the equipment cost if the provider adds it to the amount financed. Insurance on the financed equipment is normally required for as long as the balance runs and is paid separately, as are titling fees on a vehicle and inspections on used kit. Your agreement lists every charge that applies.

### What if I want to pay the equipment off early?

Then read the prepayment clause before you sign, because this tool assumes you run the full schedule, as the Payment schedule tab under the results shows it month by month. Some agreements let you clear the balance and stop the interest; others state a fixed total, a prepayment fee or a minimum earned amount, in which case paying early saves less than the schedule suggests. Ask for the clause in writing.

Still have a question? [talk to a funding advisor](https://capitalgurus.com/contacts/)

Capital Gurus is not a lender. Rates, fees and terms are set by the funding provider and disclosed in your agreement. Capital Gurus · 1700 S Pavilion Center Dr, Ste 420, Las Vegas, NV 89135.

Nothing on this page is financial, legal or tax advice.

## Decisions from some providers the same day, depending on the provider.

Subject to provider approval and document turnaround.

[Apply now](https://capitalgurus.com/apply/) · Call [(725) 567-5846](tel:+17255675846)

About 5 minutes, soft credit pull only. [talk to a funding advisor](https://capitalgurus.com/contacts/)

By the Capital Gurus Editorial Team · Reviewed by Joseph Wartz · [Editorial policy](https://capitalgurus.com/editorial-policy/)

---

Source: https://capitalgurus.com/calculators/equipment-financing-calculator/ · Last reviewed 2026-11-09 · Capital Gurus is not a lender.