Equipment Loan Calculator
Calculate monthly payments, total interest, and true cost for heavy machinery and business equipment financing.
Understanding Equipment Loans
An equipment loan is used by businesses to purchase machinery, vehicles, or technology. Because the equipment itself acts as collateral for the loan, interest rates are often lower than unsecured business loans.
The True Cost of Equipment
When financing, the "true cost" of the equipment is the purchase price minus the down payment, plus the total amount of interest paid over the life of the loan. This calculator helps you see the actual cash impact on your business.
Worked Example
- Equipment Cost: $50,000
- Down Payment: $10,000
- Financed Amount: $40,000
- Term: 60 Months at 6.5%
- Monthly Payment = $782.65
- Total Interest = $6,959
- True Cost = $56,959.
Frequently Asked Questions
Can I deduct the interest?
Yes, the interest paid on a business equipment loan is generally tax-deductible as a business expense. Furthermore, you may be able to deduct the entire purchase price of the equipment in the first year under Section 179.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.