Equipment Financing Calculator

Your Estimated Equipment Financing Cost

* Tax savings are estimates based on a 25% tax rate and the 2024 Section 179 limit of $1,220,000. 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 translates to lower interest rates — typically 5% to 25% APR depending on your business profile and the equipment type. 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 $200,000 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 $15,000 laptop 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 $1,220,000 for 2024. For example, a $150,000 excavator financed at 10% over 60 months costs roughly $3,187/month. But at a 25% tax rate, the Section 179 deduction saves you an estimated $37,500 in year one alone — reducing your effective first-year cost dramatically. Always consult your tax advisor, 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. On a $150,000 purchase at 10% APR for 60 months, $0 down gives you a $3,187 monthly payment. Put $30,000 down (20%) and your payment drops to $2,550/month — saving over $8,200 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.

Free Resource

The Business Owner's Guide to Funding

All 10 loan products compared side by side — including equipment financing rates, terms, and qualification requirements.

FAQ

Frequently Asked Questions

Use the Basecamp Funding equipment financing calculator to estimate monthly payments, total cost, and Section 179 tax savings on equipment purchases from $10,000 to $5,000,000. Compare terms from 24 to 84 months at rates from 5% to 25% APR. Free to use with no email or signup required.