Equipment Loan Calculator
Monthly payment, total interest and an amortization schedule for financing a machine, vehicle or tool
Updated 2026-11-04
- Monthly payment
- $1,094.93
- Down payment
- $6,000.00
- Amount financed
- $54,000.00
- Total interest
- $11,695.52
- Total cost incl. down payment
- $71,695.52
Fixed rate, monthly payments in arrears. With a balloon, payment = (P − B·(1+r)^−n)·r ÷ (1 − (1+r)^−n). Your lender's disclosure is the authoritative figure.
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| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $1,692.16 | $6,917.89 |
| 48 months | $1,318.30 | $9,278.29 |
| 60 months | $1,094.93 | $11,695.52 |
| 72 months | $946.79 | $14,169.24 |
| 84 months | $841.66 | $16,699.07 |
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $9,149.77 | $3,989.34 | $44,850.23 |
| Year 2 | $9,909.19 | $3,229.91 | $34,941.04 |
| Year 3 | $10,731.65 | $2,407.45 | $24,209.39 |
| Year 4 | $11,622.37 | $1,516.73 | $12,587.02 |
| Year 5 | $12,587.02 | $552.08 | $0.00 |
Equipment loans are usually secured by the equipment itself, with a down payment and a term matched to how long the machine lasts. Enter the price, down payment, any trade-in, the interest rate and term, and the calculator gives the monthly payment, total interest and the all-in cost. Example: a $60,000 machine with 10% down, financed at 8% for 60 months, costs $1,094.93 a month and $11,695.52 in interest. Add a balloon to see a lower payment with a lump sum at the end. Nothing is stored or sent.
How the payment is calculated
Amount financed = price − down payment − trade-in + any fees you roll into the loan. The monthly payment on a fixed-rate loan is P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r is the annual rate ÷ 12 and n is the number of months.
Worked example: $60,000 − $6,000 down = $54,000 financed. At 8% for 60 months, r = 0.006667, and the payment is $1,094.93. Sixty payments total $65,695.52, so the interest is $11,695.52 and the machine costs $71,695.52 all-in including the down payment.
With a balloon: if the lender lets 20% of the price ($12,000) fall due with the last payment, the formula becomes (P − B × (1 + r)^−n) × r ÷ (1 − (1 + r)^−n). The monthly payment drops to $931.61, but interest rises to $13,896.51 because the balance stays higher for longer, and you need $12,000 ready at month 60.
Term and rate change the cost more than the payment suggests
Longer terms lower the monthly payment but add interest. The same $54,000 at 8%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $1,692.16 | $6,917.89 |
| 48 months | $1,318.30 | $9,278.29 |
| 60 months | $1,094.93 | $11,695.52 |
| 72 months | $946.79 | $14,169.24 |
| 84 months | $841.66 | $16,699.07 |
Rate sensitivity
Equipment loan rates depend on your credit, time in business, the equipment's resale value and the lender. The same $54,000 over 60 months at different rates:
| APR | Monthly payment | Total interest |
|---|---|---|
| 6% | $1,043.97 | $8,638.28 |
| 8% | $1,094.93 | $11,695.52 |
| 10% | $1,147.34 | $14,840.42 |
| 12% | $1,201.20 | $18,072.01 |
| 15% | $1,284.66 | $23,079.37 |
Before you sign
The lender's loan disclosure is the authoritative figure; use this calculator to compare offers and check the numbers you are quoted.
- Match the term to the equipment's useful life, so you are not still paying for a machine you have replaced.
- Ask whether the quoted rate is an APR including fees, and whether there is a prepayment penalty.
- Compare a loan with a lease: a lease often has a lower payment but you may not own the equipment at the end.
- Check the tax treatment with your accountant. Equipment you buy may qualify for the Section 179 deduction or bonus depreciation (IRS Publication 946); interest on a business loan is generally deductible.
- Get the dealer's cash price before discussing financing, so a "low payment" does not hide a higher price.
Frequently asked questions
How do I calculate an equipment loan payment?
Subtract the down payment and trade-in from the price, then use the loan formula P × r ÷ (1 − (1 + r)^−n). $54,000 at 8% for 60 months is $1,094.93 a month.
How much down payment do equipment loans need?
It varies by lender, credit and equipment type; 10% to 20% is common, and some lenders finance 100% for strong borrowers. Each 10% of a $60,000 price you put down cuts the 60-month payment at 8% by about $122.
What is a balloon payment on an equipment loan?
A lump sum due with the last payment. It lowers the monthly payment but increases total interest, and you need the cash, refinancing or a sale of the equipment to cover it.
How long are equipment loan terms?
Commonly 2 to 7 years, matched to the equipment's useful life. The calculator accepts any term in months.
Is equipment loan interest tax deductible?
Interest on a loan used for business equipment is generally a deductible business expense, and the equipment itself may be depreciated or expensed under Section 179. Confirm with your tax adviser.
Should I take a longer term for a lower payment?
Only if cash flow needs it. On $54,000 at 8%, stretching from 60 to 84 months saves $253 a month but adds $5,003.55 in interest.
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