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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
Total First-Year Deduction
$2,000,000
Section 179 Deduction
$2,000,000
100% Bonus Depreciation
$0
Est. Tax Savings at 37%
$740,000
Down Payment
$200,000
Monthly Payment
$40,040.01
Total Interest Paid
$602,400
A $2,000,000 first-year write-off against $200,000 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.
Start Your Funding Request →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
What the numbers mean
Section 179 lets you deduct the full cost of qualifying equipment in the year it's placed in service, up to $2,560,000 for 2026. Above $4,090,000 in total purchases the cap comes down dollar for dollar. Whatever 179 doesn't cover, 100% bonus depreciation does — made permanent for equipment acquired after January 19, 2025, with no cap and no income limit. So on a $250K machine or a $12M line, the first-year write-off is the full price. The difference is which election covers which asset, and that's a conversation with your CPA. The calculator shows the split so you walk in with the number.
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.
Tax Strategy
Section 179 + 100% Bonus Depreciation at Scale
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“I’ve watched operators write huge checks to the IRS when they could have acquired the equipment, written off the full price, and grown the business at the same time. That’s not tax planning — that’s leaving capital in federal coffers that belonged in your business.”
Bobby Friel · Founder · 20+ years in banking and finance
Side by Side
Section 179 vs Bonus Depreciation
| Section 179 | Bonus depreciation | |
|---|---|---|
| 2026 limit | $2,560,000 | None |
| Phase-out | Begins at $4,090,000 in purchases, dollar for dollar | None |
| Percentage | Up to 100% of cost, your election per asset | 100%, automatic unless you opt out |
| Income limit | Can't exceed business taxable income; excess carries forward | No income limit; can create a loss |
| New or used | Both | Both, if new to you |
| State conformity | Most states follow; some cap it | Several states decouple |
| When it matters | Picking which assets to expense; state returns; staying under the phase-out | Everything 179 doesn't cover |
Since 2025 the practical answer is simple. Bonus depreciation is 100% and permanent, so the first-year write-off is the full price either way. Section 179 still matters for three things: choosing which assets to expense when you want to, state returns in states that cap bonus, and the phase-out on purchases past $4.09 million. Your CPA decides the election; the calculator shows what's in play.
Ownership
The Lease Question Nobody Puts on the Page
The deduction follows ownership. On an equipment loan, a $1 buyout lease, or a capital lease, you own the asset for tax purposes — the write-off is yours. On a true lease or fair-market-value lease, the lessor owns it and takes the depreciation; you deduct the payments instead. Neither is wrong. A true lease can be the better structure when you'll upgrade in three years or want the payment off your balance sheet. But if the Section 179 deduction is the reason you're buying this year, the structure has to be one where you own it. Ask before the proposal, not after. (And if the equipment is already yours and the cash is what you need, an equipment sale-leaseback runs the other direction.)
Timing
Placed in Service Means Running, Not Ordered
Equipment counts for 2026 when it's installed and operational by December 31 — not when the PO was signed or the financing funded. A $2M CNC line on a truck on December 28 is a 2027 deduction. Financing funds in days; the machine takes weeks. Start in Q3. If it's already Q4, the question is lead time: what can be on the floor by the 31st, and what moves to January.
Phase-Out
Above $4.09 Million — the Phase-Out, Worked Once
A $5M purchase: the cap drops by the $910,000 over the threshold, so Section 179 covers $1,650,000. Bonus depreciation covers the other $3,350,000. First-year write-off: $5,000,000 — the full price. At $6,650,000 in purchases, 179 is gone entirely and bonus covers everything. The write-off doesn't change. The paperwork and the state return do. Past a single transaction, the equipment layer anchors a larger structure — see commercial financing.
“Every year someone calls me in December with a $3 million machine and a $1 million tax problem. The math works. The calendar doesn't. The machine's twelve weeks out, so it's a 2027 deduction and a 2026 tax bill. The ones who call in August get both. Run the number now, see what the write-off looks like against the down payment, and if it's the year to buy, buy while there's still time for the truck to show up.”
— Bobby Friel · Founder, Basecamp Funding · 20+ years in banking and finance
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See What the Equipment Qualifies For — in About 60 Seconds
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