Equipment Financing Calculator

This works out what financing a machine costs three ways: a term loan, a $1 buyout lease and a fair market value lease. Enter the price, the rate and the term for the loan and the monthly payment for the lease, add your tax rate and the share of the price you can deduct in the first year, and it returns the payments, the total cash, the deductions each structure earns and the after-tax cost with the machine's end-of-term worth credited to whichever side owns it. A third mode solves a lease quote for the interest rate hidden in it, which no lessor prints. It is arithmetic on your assumptions, not tax advice.

Calculator Type

A straight term loan on a machine you are buying outright.

Equipment Price ($) *

Down Payment ($)

Documentation and Fees Rolled In ($)

Annual Interest Rate (%) *

Term (months) *

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Same machine, same term, three structures, after tax and after what the machine is still worth at the end.

Equipment Price ($) *

Down Payment on the Loan ($)

Loan Interest Rate (%) *

Term for Both (months) *

Lease Payment per Month ($) *

Due at Lease Signing ($)

First payment, documentation fee, security deposit.

How the Fair Market Value Lease Ends

Fair Market Value Buyout (% of price)

What It Is Worth at the End (% of price)

Counted on whichever side still owns the machine. Leave at zero to compare cash alone.

Marginal Tax Rate (%)

Share of the Price Deducted in Year One (%)

Section 179 plus bonus depreciation, as far as your limits and business income allow. The rest is spread over the remaining years of the term.

Discount Rate for Present Value (%)

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