Equipment Finance Calculator

How to Use the Equipment Finance Calculator

This Equipment Finance Calculator is designed to help you understand and compute the essential financial parameters involved in financing equipment. Follow this step-by-step guide to calculate your loan details.

Step 1: Input the Equipment Cost

Equipment Cost ($): Enter the total cost of the equipment you intend to finance. The value must be at least $1,000.

Step 2: Enter the Down Payment

Down Payment ($): Input the amount you plan to pay upfront. This value should be at least $0.

Step 3: Specify the Annual Interest Rate

Annual Interest Rate (%): Provide the interest rate as a percentage. This should be within 0.01% and 100%, with inputs allowed at intervals of 0.01%.

Step 4: Select the Loan Term

• 12 months
• 24 months
• 36 months
• 48 months
• 60 months
• 72 months

Choose the appropriate loan term for your financing needs from the list above.

Step 5: Indicate the Residual Value

Residual Value (%): Enter the expected residual value of the equipment at the end of the loan term as a percentage. Valid values lie between 0% and 100%, adjustable in steps of 0.1%.

Step 6: Provide the Start Date

Start Date: Select the date when you wish to start your loan. Ensure that the date falls between January 1, 2024, and December 31, 2030.

Understanding the Results

Once you have filled in the above inputs, the calculator will provide the following results:

Loan Amount: The amount to be financed, calculated as the equipment cost minus the down payment.

Residual Amount: This represents the future value of the equipment, calculated as the equipment cost multiplied by the residual value percentage.

Monthly Payment: The monthly installment you will need to pay, derived using the loan amount, residual amount, interest rate, and loan term.

Total Interest: The total interest payable over the loan term, computed from the cumulative monthly payments, adjusted by subtracting the principal (loan amount minus residual amount).

Total Cost: The overall cost of financing the equipment, inclusive of total payments and residual value.

Annual Percentage Rate (APR): This is the annualized interest rate applied on the loan.

Maturity Date: The date on which the loan term concludes, calculated from the start date and loan term.

Review these results to make informed financial decisions regarding your equipment financing. Ensure that the terms align with your financial strategy and budget.