Equipment financing is usually a straightforward term loan: you make a down payment, finance the rest, and pay it off in fixed monthly installments over a set term. This calculator shows the monthly payment, total interest, and total cost once the down payment is factored in.
| Amount financed | – |
| Down payment | – |
| Total interest | – |
| Total cost (down payment + all payments) | – |
Equipment loan terms commonly run anywhere from about 2 to 7 years depending on the equipment’s useful life and the lender, and rates vary with your business credit, time in business and the collateral value of the equipment itself. If you’re comparing this against a general-purpose business loan instead, try the loan calculator, or the business line of credit calculator if you’d rather finance it through revolving credit.
Frequently asked questions
Does equipment financing require a down payment?
Often, though not always — some lenders finance 100% of the equipment cost, especially for well-established businesses or lower-risk equipment. A down payment generally lowers your rate and monthly payment.
Is the equipment itself used as collateral?
Usually yes. This is one reason equipment financing can be more accessible than an unsecured business loan, since the lender has the equipment to repossess if payments stop.
Is leasing the same as equipment financing?
No. Financing means you own the equipment once it’s paid off; leasing usually means you’re renting it with an option to buy or return it at the end of the term, often with different tax treatment.
More free tools: Loan calculator · Business line of credit calculator · All free tools
This calculator gives estimates for information only and is not financial advice. Actual rates, terms and down payment requirements vary by lender and equipment type.