Equipment Loan Calculator

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

Our free equipment loan payment calculator below is designed to assist you in your payment calculator options and estimating interest rates and monthly payments for your loan payment calculator and payment options calculator with ease. When you’re on the brink of acquiring new equipment, financing is often the most preferred route. It provides the leeway to spread the estimated monthly payment amount for an expensive piece of equipment over a period, making it a less burdensome investment. However, the journey to find the right equipment dealer or financing company and securing an easy approval can be challenging. Understanding the total cost of the loan payment calculator and the structure of repayment is essential to ensure you can comfortably pay back as your investment in equipment begins to yield results.

Our equipment loan calculator was crafted to expedite you complete this process and save dollars up for you to save up. While it’s imperative to thoroughly review the complete terms and conditions of any loan offer, lease or purchase you’re considering, our equipment loan calculator also serves as a solid starting point, enabling you to save dollars up to explore different scenarios. Utilizing our equipment loan calculator will provide you a clearer picture of how much an equipment loan might cost you, ensuring you are well-informed before making any commitments.

Smarter Loans Guides

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."

Lenders have a set of criteria they consider when determining the interest rate for an equipment loan. Your credit score is often at the forefront of these considerations. A higher score usually translates into lower rates and less stringent terms. Additionally, the overall financial health of your business, year-over-year revenue, and your debt-to-income ratio will be evaluated. The type of equipment you are purchasing also plays a role as different equipment may come with different levels of risk for the lender.

Monthly Payments

The total amount principal interest that you estimate you’re expected to pay each month is what constitutes the value of your estimated monthly payment amount. The terms of the equipment loan significantly vary and impact this total amount of your monthly payment and estimated monthly payment value. Typically, opting to apply for a loan with a longer term results in lower monthly payments, making paying it more manageable on a month-to-month basis.

Total Cost of Loan

The calculated total interest cost of your loan encapsulates all other associated costs of obtaining the loan, inclusive annual percentage rate of interest paid and any applicable fees paid. Having a clear understanding of the applicable interest rate, fees paid and total interest cost helps in evaluating whether the loan is a viable option considering the anticipated return on investment from the equipment purchase.

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 and to proper calculate amounts and compare rates from other lenders.


This is your Annual Percentage Rate. (also known 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. Rates are subject to change.

Total Cost of Loan Amount

The applicable total cost of your loan encapsulates all other associated costs of obtaining the loan, inclusive of interest and any applicable fees paid. Having a clear understanding of the interest rate, applicable fees and total cost helps in evaluating whether the loan is a viable option considering the anticipated return on investment from the equipment purchase.

The Average Interest Rate on Equipment Financing

The both interest rate and principal due rate is a pivotal aspect of equipment financing, significantly impacting both your monthly payments and the total cost of the loan. Interest rates paid on equipment financing from most lenders can vary widely, typically ranging from 2% to 20%. Various factors contribute to this variance including the lender you choose, the loan amount you qualify for, the term of the loan, and other factors in general and your credit profile. It’s advisable to compare offers from multiple lenders to secure the most favourable interest rate.

Calculating 6% Interest on a $30,000 Loan

On a loan amount of $30,000, paying a 6% interest rate implies that in a year, you’d incur $1,800 in other fees and interest charges to repay it. The total amount of cumulative annual fees and interest cost over the life of the term of the loan would be contingent vary depending on the monthly payment and structure of monthly payment and the duration of the first payment and life of the loan. Interest rates are subject to change.

Average Terms for Equipment Loans

Equipment loans offer a range of various monthly payment and pay back terms, commonly spanning from 2 to 7 years. This flexibility in the monthly payment and pay back allows for the cost of the equipment purchase to be spread out over longer term in a time frame that aligns estimated monthly payment with the revenue generation and value it brings to your business.

How to Estimate Monthly Financing Costs

Estimating monthly financing costs is simplified with our equipment loan calculator and monthly amount payment calculator and payment amount calculator here. By using our amount calculator and monthly amount payment calculator and monthly amount payment calculator and payment amount calculator and inputting the necessary details such as the loan amount, interest rate, and the term of the loan, you’ll receive a quick estimate of your monthly payments. This immediate insight assists in budgeting and deciding on the affordability of the equipment loan, making the financing process less daunting and more transparent.

Embracing the Lease Option

Aside from loans, leasing is another viable avenue for acquiring equipment. Lease payments are often compared to loan monthly payments to ascertain which option is more financially sound. While loan types and leases may offer lower monthly payments, it’s crucial to consider the total cost over the longer term, and the value proposition each option presents.

Comparing Loan and Lease Payments

Our lease finance calculator also provides a comparative insight into loan fees and lease payments, aiding you in making a well-informed decision between leasing or loaning equipment. Understanding the long-term financial implications of each lease or option is crucial as it impacts your business’s cash flow and overall financial health. The journey to finance for acquiring new equipment need not be a strenuous one. With the right tools like our equipment finance loan calculator and a thorough understanding of the financial commitments and fees involved in purchase, you’re well on your path to save and making this purchase a sound investment in your life and business’s growth.

Frequently Asked Questions

What is an equipment loan?

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

How does an equipment loan work?

Equipment finance, financing is a secured type of loan, which in general means that the value of the equipment that you are buying is subject to the collateral. You will risk losing the whole collateral of financed equipment if you fail or are not able to pay repay the loan on time. Typically equipment financing loans come with a term of 3 to 10 years, but this can vary depending on a case-by-case basis.

When should you consider an equipment loan?

Equipment financing emerges as a beacon of hope when venturing into the acquisition of substantial equipment, be it a robust tractor, a precise CNC Machine, or hefty machinery. The lofty price tags on such pieces of equipment can be an immediate deterrent for a person or a burgeoning business. Hence, the customary route is to embrace an equipment loan, making it feasible to stagger the payment across a span of time. As the calendar flips to October, a period often associated with a ramp-up in operations in many industries, the urgency to procure essential equipment loans escalates. Engaging with a dealer, one could notice a plethora of options laid out, each with its unique terms and payment structures.

The prospect of generating augmented income post-acquisition of the needed equipment becomes a compelling narrative for taking out a loan. However, it’s not a subject to venture into without a meticulous examination of the accompanying repayment structure, specifically the principal interest segment of the loan. The journey from contemplating equipment acquisition to the person actually steering the newly acquired tractor or operating the CNC machine should be paved with well-informed decisions. The monthly Payment Calculator becomes an indispensable companion. It’s not merely about knowing what amount leaves your business coffer for monthly payment, but understanding the total cost encapsulated in that monthly payment figure. The Payment Calculator demystifies these numbers, presenting a clearer picture of how the principal, interest, and other associated costs intertwine over the loan term.

Furthermore, the scenario might present a fork in the road where leasing shines as a viable alternative to outright purchase via a loan. The terms of lease payments, often laden with their own set of complexities, require a discerning eye to compare against loan payments. The allure of potentially lower monthly lease payments, especially from a cash flow standpoint, might seem appealing. However, a thorough comparison using the Payment Calculator could unveil long-term implications that might sway your decision one way or the other. Should one fail to compare and notice the subtle yet impactful differences between leasing and loaning, the repercussions could reverberate through the financial health of the individual or business. The dealer at the forefront of the transaction may have incentives that do not align with your best interest, hence the onus falls on you to calculate, compare, and discern the most advantageous route.

Whether it’s about mitigating the financial strain of a hefty purchase in October or any other month, or ensuring the dealer-led negotiations are in your favour, having a reliable Payment Calculator at your disposal is quintessential. It not only illuminates the path but also empowers the dealer and you with the knowledge to negotiate better terms, be it for a loan or a lease, ensuring the equipment propels your operations forward without the dealer shackling you with unmanageable debt.

How are equipment payments calculated?

The equipment financed lease payments will be determined based on the total cost of the equipment financed by the lease amount, the downpayment that you contribute, the principal and total interest due amount, the applicable interest rate, and the term length of the lease loan. Make sure that you carefully calculate review and understand the complete subject of the terms of payment for your equipment lease loan agreement and how the lease payments are calculated.

What are the current average equipment loan rates?

Equipment loan annual due rates and fees can vary greatly and vary depending on your personal life and business financial history, the lender you are getting the or lease financing from, the type of equipment you are buying and more. In general, equipment and lease loan annual interest rates and fees can vary 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 most lenders have different loan types and different lending companies are better suited for different people. Check out the list of top ten equipment loans and loan providers at Smarter Loans as a start.

How do I qualify for an equipment loan?

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

Can I get an equipment loan online?

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