Equipment Loan Calculator
- Down payment
- Financed principal
- Interest
Financing adds $10,829.18 to the $60,000.00 price.
How the equipment loan calculation works
Subtract the down payment from the price
A $60,000 machine with $10,000 down leaves $50,000 to finance. The down payment the lender asks for depends on your credit and the equipment.
The loan is repaid in equal monthly payments
Payment = amount financed × r ÷ (1 − (1 + r)^−n), with r the yearly rate ÷ 12. $50,000 at 8% over 5 years is $1,013.82 a month.
Interest is every payment minus what you borrowed
60 × $1,013.82 is $60,829.18, so $10,829.18 is interest.
Total cost is the price plus interest
Down payment + financed principal + interest is what the equipment costs you in cash over the term.
Worked example. A $60,000 piece of equipment with $10,000 down leaves $50,000 to finance. At 8% over 5 years that's $1,013.82 a month and $10,829.18 in interest, so the equipment costs $70,829.18 in total.
Equipment Loan FAQ
How do I calculate an equipment loan payment?
Subtract the down payment from the price, then amortize the rest: payment = amount × r ÷ (1 − (1 + r)^−months), where r is the yearly rate ÷ 12.
How long are equipment loans?
The lender sets the term, often matching it to how long the equipment will last. SBA 7(a) loans run 10 years or less unless the equipment's useful life is over 10 years, with a 25-year maximum. On $50,000 at 8%, 3 years costs $1,566.82 a month and $6,405.46 in interest; 10 years cuts the payment to $606.64 but interest rises to $22,796.56.
How much down payment do I need for an equipment loan?
It depends on the lender, your credit and the equipment. The equipment usually serves as collateral, and some lenders finance the full price. A larger down payment lowers both the monthly payment and the total interest; change it in the calculator to see by how much.
What are equipment loan interest rates?
There is no single market rate: lenders price each loan on your credit, time in business and the equipment. Many variable business loans are quoted as the prime rate plus a spread, and prime was 7.00% in the Federal Reserve H.15 release of 19 Oct 2026. For SBA 7(a) loans, which can finance equipment, the SBA caps variable rates at prime + 6.5% for loans of $50,000 or less, down to prime + 3% above $350,000 (13.5% to 10% at that prime rate). On the $50,000 five-year example, 7% costs $990.06 a month and 10% costs $1,062.35.
Is an equipment financing calculator the same as an equipment loan calculator?
For a loan, yes: equipment financing usually means a loan secured by the equipment, and the payment math is the same. A lease is different, because you pay to use the equipment and may buy it at the end; use the lease vs buy calculator for that, or the balloon payment calculator if the loan ends with a lump sum.
Is it better to lease or finance equipment?
Financing usually costs less over the life of the equipment and you own it at the end. Leasing keeps monthly costs and upfront cash lower. Compare both with the lease vs buy calculator.
Can I deduct equipment loan interest?
Interest on a loan used for business is generally a deductible business expense. The equipment itself can be depreciated or expensed, financed or not: for tax years beginning in 2026 the Section 179 limit is $2,560,000, reduced once purchases pass $4,090,000, and 100% bonus depreciation applies to qualified property acquired and placed in service after January 19, 2025. Check with your tax preparer.
Sources: Federal Reserve H.15: bank prime rate, 19 Oct 2026 · eCFR 13 CFR 120.212 and 120.214: 7(a) maturities and maximum variable rates · SBA: 7(a) loans · IRS Rev. Proc. 2025-32 (2026 Section 179 limits) · IRS Publication 946: How to Depreciate Property