CAPITAL TOOL 05
Equipment Financing
Payment Calculator
Estimate the payment and total financing cost using the equipment price and terms you enter. The calculator does not assign rates based on a credit category.
HOW THE ESTIMATE WORKS
Test the payment against the useful life and cash flow.
The estimate starts with equipment, tax, delivery, installation, and other entered project costs. It subtracts the down payment or trade-in, then calculates a level monthly payment using the selected term, entered annual rate, and any final balloon or residual.
A manageable payment is only one part of the structure. Consider whether the term matches the equipment’s useful life, whether the equipment should generate revenue or savings, and whether working capital is still available after closing.
Section 179, bonus depreciation, business-use rules, taxable income limitations, asset eligibility, and entity circumstances can change the result. Review potential tax treatment with a qualified tax professional.
FROM PAYMENT TO STRUCTURE
The lowest payment is not automatically the best structure.
Term, advance payment, residual value, prepayment treatment, documentation fees, ownership, and end-of-term obligations should be evaluated together.