This equipment financing calculator from Rockstone Lending, a small-business funding broker in Yuma, Arizona, estimates the monthly payment, total interest and total cost of an equipment loan from the price, down payment, annual rate and term you enter. It models a standard loan, not a lease, and is not a quote; lending partners set actual terms. Call (928) 436-5545.
How the estimate works
- Amount financed = equipment price − down payment
- Monthly payment = amount financed × r ÷ (1 − (1 + r)−n), where r is the annual rate ÷ 100 ÷ 12 and n is the term in months
- Total interest = (monthly payment × n) − amount financed
- Total cost including down payment = (monthly payment × n) + down payment
It assumes a fixed rate, equal monthly payments, no fees and no balloon. Enter the interest rate stated in the offer to match the lender's payment; an APR includes certain fees and will give a different figure.
What to enter as the price
Use the total on the vendor's written quote, not the sticker price. Delivery, installation, attachments, training and any tax the seller charges can add meaningfully to the cost. Some lenders finance those extras and some limit financing to the equipment itself, so ask before you assume they are included. If you are trading in older equipment, the trade-in value usually reduces the amount to be financed; you can enter it as part of the down payment for a rough estimate.
Down payment and term: the trade-offs
- A larger down payment lowers the amount financed, the payment and the total interest, but uses cash the business may need elsewhere. Whether a down payment is required at all depends on the partner.
- A longer term lowers the payment but increases total interest. It also matters how the term compares with the equipment's useful life: paying for a machine after it has stopped earning its keep is a cost to avoid.
- Used equipment may come with a shorter term, because lenders weigh its age, condition and remaining life. Try a shorter term to see how the payment changes.
Leases work differently
An equipment lease is not modeled here. Lease payments depend on how much value the lessor expects the equipment to keep, and what you pay over the lease depends on its end-of-term option: buying the equipment for a set amount or fair market value, returning it, or upgrading. To compare a lease with a loan, ask for the total of all lease payments plus any purchase option, then set that beside the total cost shown here. Our guide to $1 buyout and fair market value lease options covers the end of the term in detail, and our equipment financing page explains loans, leases, titles and UCC filings.
Costs not shown
Fees, required insurance, maintenance, and any prepayment or early-termination terms are not included. Ask about each before you accept. For contractors, kitchens and clinics, see our industry pages for equipment common in each sector.
By Rockstone Lending · Updated
