Equipment Financing Calculator
Calculate monthly payments for business equipment loans and compare financing options.
Business Equipment Loan Calculator
Enter your equipment details to calculate financing costs and compare loan vs lease options
Understanding Equipment Financing
What is Equipment Financing?
Equipment financing allows businesses to purchase necessary equipment without paying the full cost upfront. The equipment itself often serves as collateral, which can result in better rates compared to unsecured loans.
Loan vs Lease
- Loan: You own the equipment after payoff
- Lease: Lower payments, return or buy at end
- Consider useful life of equipment
- Evaluate tax implications of each option
- Leasing may include maintenance
Typical Equipment Financing Rates
- Excellent Credit: 4-8%
- Good Credit: 8-12%
- Fair Credit: 12-18%
- New Equipment: Lower rates
- Used Equipment: Higher rates
Tax Benefits
- Interest payments are tax-deductible
- Section 179 allows full deduction in year 1
- Depreciation deductions over useful life
- Lease payments may be fully deductible
- Consult a tax professional for specifics