Equipment Financing Payment Estimator

What it does

If you borrow to buy equipment, this works out your monthly loan payment and what the financing costs you overall. It amortizes the loan (spreads principal and interest across every month), then shows total interest and a rough tax saving on that interest. This is for a financed purchase — if you are weighing loan-vs-lease, use the Lease vs. Buy tool.

When to use it

When you have already decided to buy and want to see the monthly payment and the true cost of the loan at a given rate, term, and down payment. Crop-agnostic. Reach for it when budgeting cash flow or comparing financing offers.

How it calculates

• Tax savings are estimated on the interest portion only; principal repayment on a financed purchase is not deductible.
• Depreciation (e.g. Section 179 / MACRS) is not modeled here — consult a tax advisor.

What you enter

Equipment Cost($)

Financing Rate(%/yr)

Term(months)

Down Payment($)

Tax Rate(%)

What you get

Monthly Payment($)

Total Cost of Financing($)

Total Interest Paid($)

Tax Savings (on interest)($)

Net Cost After Tax($)

Reading the result

Monthly Payment is your fixed installment. Total Interest Paid is the premium you pay for financing rather than paying cash — a longer term lowers the monthly payment but raises this number, so try a few terms. Tax Savings applies your tax rate to the interest only (loan principal is not deductible), and Net Cost After Tax is the bottom line. Note this ignores depreciation deductions like Section 179 / MACRS, which can matter a lot — treat the tax figure as partial and confirm with an accountant.

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