Equipment Loan Calculator

Our free equipment loan calculator will help you estimate interest rates and monthly payments for your loan easily.

When you are ready to buy new equipment, financing it is the preferred way to do it. Getting financing allows you to stretch your payment for an expensive piece of equipment over time. However, finding the right equipment financing company and an easy approval can be a challenging. When financing equipment you need to understand the total cost of the loan and repayment structure, so that you comfortably pay back as your investment into equipment starts to bring results.

Our Equipment loan calculator was created to help you do that quickly. You should always carefully review the terms and conditions of any loan offer you are considering, but you can use our equipment loan calculator as a starting point, and explore different scenarios.

Smarter Loans Guides

Use our equipment loan calculator to calculate how much an equipment loan can cost you.

Equipment Loan Calculator

1 year2 year term5 years

Your Payment Details

Your Payment Details

"Below you will find a detailed breakdown of your payments in each month and each year. Find out how much interest, principal and total you'll be paying with the information you entered. Change your term length, interest rate and loan amount to see how it impacts your payment breakdown."

Understanding your equipment loan payment calculations

Most lenders will take your credit score into account when calculating the interest rate. Higher scores typically translate into lower rates and less stringent terms. The overall health of your business and year over year revenue will be evaluated. Your debt-to-income ratio will often be considered when applying for an equipment loan, as well as the type of equipment you are buying.

Monthly Payments

This is the expected total amount you would have to pay each month.  This value will be based on the terms of the equipment loan. Your monthly payments will typically be lower if you choose a loan with a longer term.

Total Cost of Loan

This is the expected total cost of your loan. It includes all the other associated costs of taking out the loan, including interest and any applicable fees.

Payment Details

The Payment Details table breaks down all your payments over the term of your loan, and illustrates the total principal and interest amounts that will be paid back each year over the course of your loan term. Please speak to your lender if you are unclear about any of the loan terms. 


This is your Annual Percentage Rate. (also knows as ‘interest rate’)  Think of the APR as the total annual cost of your personal loan. For example. if you take out a $100,000 loan for 1 year, at 10% interest, you will have to pay back $110,000 after the one year passes. 

Frequently Asked Questions

What is an equipment loan?

An equipment loan means that you are using financing in order to purchase a piece of equipment, and pay for it over time. The financing comes with a lender fee (interest rate) that must be repaid on top of the total cost of the equipment.

How does an equipment loan work?

Equipment financing is a secured type of loan, which means that the equipment that you are buying is the collateral. You will risk losing the equipment if you are not able to repay the loan on time. Typically equipment financing loans come with a term of 3 to 10 years, but this can vary on case by case basis.

When should you consider an equipment loan?

Equipment financing is used when buying equipment, such as a tractor, a CNC Machine, or heavy machinery. This type of equipment can be expensive to pay for right away and therefore a person or business will take out a to loan to pay for it. Getting the equipment will allow you to generate more income and pay back the loan.

How are equipment payments calculated?

The equipment payments will be determined based on the total cost of the equipment, the downpayment that you contribute, the interest rate, and term length of the loan. Make sure that you carefully review and understand the terms of your equipment loan agreement and how the payments are calculated.

What are the current average equipment loan rates?

Equipment loan rates can vary greatly depending on your personal and business financial history, the lender you are getting the financing from, the type of equipment you are buying and more. In general, equipment loan annual interest rates can be anywhere from 2% and go up to 20%+.

What are the best places to get an equipment loan?

The best equipment loans are hard to find all by yourself. Especially because different loan types and different lending companies are better suited for different people. Check out the list of top equipment loan providers at Smarter Loans as a start.

How do I qualify for an equipment loan?

To qualify for an equipment loan, you will typically need: Proof of residency in Canada, credit history, steady income from employment, or a profitable business and government issued ID.

Can I get an equipment loan online?

There are many companies that offer equipment loans in Canada entirely online. At Smarter Loans you can find such companies, apply for an equipment loan from the comfort of your home, and receive a pre-approval in 24 hours.