Loans · Business

Equipment financing calculator.

Turn an equipment quote into a monthly payment, total interest, a balloon if there is one, and the all-in rate once fees are counted. Every figure is yours; nothing is pre-filled from the market.

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Your quote

$
$
%
Use 0 if none applies to you.
$
Counted in the all-in rate.
%
Example value. Replace it with your lender quote.
months
%
Percent of the equipment price. Use 0 for a fully amortizing loan.

Result

How it is calculated

Amount financed = price + sales tax (only if rolled in) + fee − down payment. Payment = r × (P − B ÷ (1+r)n) ÷ (1 − (1+r)−n), where r is the annual rate divided by 12, n the number of months, P the amount financed and B the balloon. With no balloon this is the standard amortizing-loan payment. All-in rate is the monthly rate that makes the payments (and balloon) worth exactly the amount financed less the fee, times 12, so a fee raises it above the stated rate.

Worked example

$100,000.00 of equipment, $10,000.00 down, a $500.00 fee added to the loan, 8% for 60 months and no balloon: the amount financed is $90,500.00, the payment $1,835.01, total interest $19,600.82 and the all-in rate 8.23% against the stated 8.00%. With a 20% balloon ($20,000.00 due at month 60) the payment falls to $1,562.82 but interest rises to $23,269.15.

Sources and limits

This page uses the standard level-payment loan formula and supplies no rates. Your lender's contract controls: daily interest, minimum interest, deposits and prepayment terms are not modelled. The all-in rate follows the idea behind the actuarial method in Appendix J to Regulation Z (12 CFR 1026), checked 2026-10-16. That rule governs consumer credit, so a business equipment loan is not bound by it and its disclosed APR may differ.

FAQ

How do you calculate an equipment loan payment?

Use the amortizing-loan formula on the amount financed, the monthly rate and the number of months. A balloon lowers the payment because less principal is repaid during the term.

Does a balloon payment make equipment financing cheaper?

It lowers the monthly payment but the balance left outstanding keeps accruing interest, so total interest is higher. The calculator shows both so you can compare.

Why is the all-in rate higher than the stated rate?

Fees reduce the money you really receive while the payments stay the same. Dividing the cost over the cash received gives a higher rate.

Is this the same as a lease?

No. A financed purchase makes you the owner from day one. Use the equipment lease vs buy calculator to compare the two on present-value cost.

Disclaimer

Estimates only, not financial, tax or legal advice. Confirm every rate, fee and rule with your lender, your accountant and the official source linked above. Everything runs in your browser; nothing you enter is sent anywhere.

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