Before you commit to financing equipment, you need to know exactly what you're signing up for. Our equipment financing calculator above gives you instant estimates, but let's dive deeper into how these calculations work and what factors affect your payment.
The Basic Equipment Loan Formula
Monthly payment calculations use this formula:
Where:
- M = Monthly payment
- P = Principal (loan amount)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Number of payments (term in months)
Don't worry - you don't need to do this math yourself. That's what our calculator is for!
Example: $150,000 Excavator
Let's say you're financing a $150,000 excavator with these terms:
- Amount: $150,000
- Rate: 7.5% APR
- Term: 60 months
- Down payment: $0
Your monthly payment: $3,003
Total paid over 60 months: $180,180
Total interest: $30,180
How Different Variables Affect Your Payment
Impact of Interest Rate
On that same $150,000 loan over 60 months:
- At 6.99%: $2,966/month (baseline)
- At 8.5%: $3,070/month (costs $6,240 more)
- At 12%: $3,337/month (costs $22,260 more)
Impact of Loan Term
Same $150,000 at 7.5%:
- 24 months: $6,772/month ($12,528 total interest)
- 36 months: $4,665/month ($17,940 total interest)
- 48 months: $3,622/month ($23,856 total interest)
- 60 months: $3,003/month ($30,180 total interest)
Hidden Costs Most Calculators Miss
Our calculator gives you a solid estimate, but be aware of potential additional costs:
- Documentation fees: $150-$500 one-time
- UCC filing fees: $50-$200
- Property tax: Varies by state (some charge on equipment)
- Insurance requirements: Lenders require coverage
Lease vs. Loan: Different Calculations
If you're considering a lease instead of a loan, the math changes. Leases factor in:
- Residual value (what the equipment is worth at lease end)
- Money factor (similar to interest rate)
- Acquisition fees
Generally, lease payments are lower than loan payments, but you don't build equity. Use our financing options page to compare.
Get Your Real Numbers
Calculator estimates are great for planning, but to know your actual rate and payment, you need a real quote. Our pre-qualification process takes just minutes and doesn't affect your credit score.
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Equipment Financing Calculator
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*Estimates only. Actual rate depends on creditworthiness, time in business, and equipment type. Rates as of July 31, 2026. Section 179 savings are an estimate — consult your tax advisor and verify current limits.
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Equipment financing specialist with years of experience helping businesses acquire the equipment they need to grow and succeed.
