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Equipment Loan Calculator

Use our free equipment loan calculator to estimate monthly payments, total interest, and total cost. Includes residual value, sales tax, and a Lease vs Buy comparison mode for equipment financing decisions.

Financial

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Currency

Mode

Equipment Cost

Down Payment (%)

%

Annual Interest Rate (%)

%

Loan Term (years)

years

Residual Value

Sales Tax Rate (%)

%

Formula

Equipment loans are used by businesses to purchase machinery, vehicles, technology, and other equipment. This calculator includes residual value, sales tax, and a Lease vs Buy comparison to help you make informed equipment financing decisions.

M = (P + T)[r(1+r)^n] / [(1+r)^n - 1]

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the equipment cost and down payment percentage.
2Enter the interest rate and loan term.
3Add the residual value (equipment value at end of term) if applicable.
4Include sales tax rate for a precise estimate.
5Switch to Total Cost mode to see the full cost of borrowing.
6Use Lease vs Buy mode to compare financing options.

Examples

$50,000 equipment, 10% down, 7%, 5 years

1.Loan amount = $50,000 - $5,000 (10%) = $45,000
2.Tax = $50,000 x 7% = $3,500
3.Financed = $45,000 + $3,500 = $48,500
4.Monthly payment = $960.19

Result: $960.19

Frequently Asked Questions

Equipment financing is a loan or lease used to purchase business equipment. The equipment itself typically serves as collateral for the loan.

The estimated value of the equipment at the end of the loan term. A higher residual value means you finance less and have lower payments.

Leasing typically offers lower monthly payments and easier upgrades, while buying builds equity and offers tax benefits through depreciation.

Equipment loan terms typically range from 3 to 10 years, matching the useful life of the equipment.

Many equipment lenders work with businesses of all credit profiles, though rates will be higher for lower credit scores.

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CalculateMe Team

Last updated: 2026-07-15

Equipment Loan Calculator - Monthly Payment, Lease vs Buy & Total Cost | CalculateMe | CalculateMe