Select your equipment type, adjust the cost and financing terms, then see your monthly payment, total cost, and estimated tax savings update instantly.
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Equipment Details
Need a larger equipment line? Talk to a specialist. Larger lines available when revenue, cash flow, and equipment value qualify.
Financing Terms
Federal and state combined. Your CPA has the real number for your entity.
Your Selections
Your Estimated Equipment Financing Cost
Monthly Payment
$5,005.00
Total Repayment
$325,300
Total Interest Paid
$75,300
Financed Amount
$225,000
Section 179 Deduction
$250,000
100% Bonus Depreciation
$0
Est. Tax Savings at 37%
$92,500
Effective Cost After Tax Savings
$232,800
A $250,000 first-year write-off against $25,000 of cash down — more write-off than you put down. Section 179 covers the first $2,560,000; 100% bonus depreciation, made permanent in 2025 with no cap and no income limit, carries the rest.
* Estimates at the bracket you set and the 2026 Section 179 figures. Limits, eligibility and state conformity vary by year and business type — your CPA models the actual figures.
Equipment financing uses the equipment itself as collateral
No additional collateral required and potentially lower rates than unsecured products.
See What You Qualify For →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.
The Math
How this calculator gets to the number
The payment is the standard amortising formula: take the cost, subtract the down payment, and spread what's left across the term so every month is the same size. Each payment covers that month's interest first, and whatever's left comes off the balance. Early months are mostly interest, late months are mostly principal, and the last payment is trimmed to clear the balance exactly.
The tax block is the 2026 figures. Section 179 lets you deduct up to $2.56 million of qualifying equipment in the year you place it in service; above $4.09 million of total purchases that cap phases out dollar-for-dollar. Whatever 179 doesn't cover, 100% bonus depreciation does — made permanent in 2025, no cap, no income limit. Either way the first-year write-off is the full price.
“Placed in service” is the part that catches people in December. The equipment has to be delivered, installed and actually available for use by the 31st — not ordered, not paid for, not sitting on a truck. Buy it on the 28th and commission it on January 3rd and the deduction belongs to next year.
What it assumes
- The rate is whatever you set on the slider — nothing is published or implied.
- Financing covers the full cost less your down payment, with no balloon and no buyout.
- The equipment is placed in service this tax year and qualifies for the election.
- Tax savings are the full first-year deduction at the bracket you set.
What it does not model
- Sales tax, freight, rigging, installation and other soft costs.
- Lender fees: documentation, origination, UCC filing, prepayment.
- State conformity — several states decouple from federal 179 and bonus rules.
- Your entity type, loss carryforwards, or income limits on the deduction.
Funded, In Detail
Structures We’ve Funded in Equipment
Real transactions, written up in full — the structure, the numbers, and the timeline.
“Finance the equipment. Deduct it with Section 179. Keep your cash. This calculator shows you the monthly payment, total cost, and tax savings side by side.”
— Bobby Friel, Basecamp Funding · Founder · 20+ years in banking and finance
Understanding Equipment Costs
How Equipment Financing Costs Work
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 — up to $2.56 million for the 2026 tax year, 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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Frequently Asked Questions
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