Skip to content
ENExplore Calculators

Equipment Loan Calculator

Work out equipment loan instantly with clear inputs, formula shown and shareable results.

About Equipment Loan Calculator

Equipment finance is secured on the asset, so terms are typically matched to its useful life. Aligning the annual debt service with the cash the equipment generates is the test of whether the purchase funds itself.

Formula

Equipment loan

Financed = cost × (1 - down%); EMI = PMT(financed, r, n)

Worked example

With the default values below, Equipment Loan Calculator returns Monthly Instalment of $54,015.24. Change any input above and every figure here is recalculated in your browser.

Inputs used

Equipment Costminimum 0
3,500,000
Down Payment Shareaccepts 0–60 %
20 %
Annual Interest Rateaccepts 0–100 %
11.5 %
Term In Yearsaccepts 1–15
6

Results

Monthly Instalment
$54,015.24
Amount Financed
$2,800,000.00
Total Interest
$1,089,097.08
Annual Debt Service
$648,182.85

Step by step

  1. 1Values used
  2. 2Equipment loan
  3. 3Monthly Instalment= 54,015.24
  4. 4Amount Financed= 2,800,000.00
  5. 5Total Interest= 1,089,097.08
  6. 6Annual Debt Service= 648,182.85

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.

Frequently Asked Questions

Should the term match the asset life?

Ideally yes, and never exceed it — otherwise you are still paying for equipment that has stopped earning.

Is a lease better than a loan?

Leasing preserves cash and can shift obsolescence risk; a loan builds ownership. Compare on after-tax cash flows.

Related Calculators

Equipment Loan Calculator – Calculate Monthly Instalment