Equipment Financing Calculator

Your Estimated Equipment Financing Cost

* Tax savings are estimates based on a 37% combined rate and the current Section 179 limit. Consult your tax advisor. Section 179 limits and eligibility vary by year and business type.

Equipment financing uses the equipment itself as collateral

No additional collateral required and potentially lower rates than unsecured products.

This calculator is for informational purposes only and does not constitute a loan offer. Actual rates, terms, and approval depend on your business profile and lending partner. We recommend applying so a funding specialist can provide expert guidance tailored to your situation.

Equipment financing works differently from unsecured business loans because the equipment itself serves as collateral. This reduces the lender's risk, which typically translates to more competitive rates than unsecured products. At the end of the term, you own the equipment outright with no balloon payment or buyout. For businesses that rely on physical assets to generate revenue — trucks, excavators, medical devices, kitchen equipment — this is often the most cost-effective way to acquire what you need without draining cash reserves.

Matching your loan term to the equipment's useful life is one of the most important decisions you'll make. A 60-month term on a $400,000 commercial truck that runs for 10+ years makes perfect sense — you'll own it free and clear with years of productive life remaining. But an 84-month term on a $250,000 technology fleet that becomes obsolete in 3 years means you're still making payments on equipment you've already replaced. As a rule, your financing term should never exceed the equipment's expected useful life.

Section 179 of the IRS tax code is one of the biggest advantages of equipment financing. It allows you to deduct the full purchase price of qualifying equipment in the year you place it in service — over $1.2 million, though the exact figure changes year to year. Because you can finance the equipment with little money down and still deduct the full price, the first-year write-off is often more than what you put down. Use the calculator above to see your estimated monthly payment and first-year tax savings for any equipment cost. At a 37% combined rate, a seven-figure equipment purchase can generate significant tax savings in year one alone — reducing your effective first-year cost dramatically. Your CPA confirms the specifics, as limits and eligibility vary by year and business type.

Most equipment financing requires zero down payment — meaning you can acquire equipment without any upfront cash outlay. However, putting 10-20% down has clear benefits: it reduces your monthly payment and total interest paid. Use the calculator above to compare $0 down versus 10% or 20% down on your specific equipment purchase — you'll see exactly how much each option saves in total interest. Whether to put money down depends on your cash position and whether you'd rather preserve liquidity or minimize long-term cost.

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The Contractor's Funding Playbook

Equipment financing, Section 179 tax strategy, and capital plays for asset-heavy businesses.