Last reviewed November 4, 2026 by the Silverback Capital funding team.
Enter the equipment price, your down payment, the rate and the term to see the monthly payment, the total interest and the full cost of the equipment. Add a balloon or purchase option if the agreement leaves a sum to pay at the end. It works for trucks, trailers, machinery and any other business equipment with a fixed-rate quote.
Worked example. $150,000 of equipment with 10% down ($15,000) financed at 9.5% over 60 months is $2,835.25 a month, with $35,115 of interest.
Add a 10% purchase option at the end and the monthly payment drops to $2,638.97, but $15,000 is still due at the end and total interest rises to $38,338. A lower payment is not always a cheaper deal.
How the payment is calculated
The down payment comes off the price first; the rest is the amount financed. With nothing due at the end, the payment is the standard amortization formula: payment = A × r ÷ (1 − (1 + r)−n), where A is the amount financed, r is the annual rate divided by 12 and n is the number of months.
A balloon or purchase option is a sum left over at the end. Because it is not paid down month by month, the calculator takes its present value off the amount financed before working out the payment. You pay interest on that sum for the whole term, which is why total interest goes up even as the payment goes down.
Equipment loan or equipment lease?
With an equipment loan, you own the equipment from the start and the funder holds a lien on it until the last payment. A $1 buyout lease works much the same way in practice: you make every payment and then buy the equipment for a nominal sum, so the calculator treats it like a loan with nothing due at the end.
A lease with a purchase option (often 10%) or a fair market value lease keeps the payments lower because part of the price is left for the end, when you can buy the equipment, return it or renew. That suits equipment you expect to replace, such as technology or vehicles you rotate. It costs more overall if you end up buying it anyway. For a fuller comparison, see how to choose equipment financing.
Down payment, term and balloon: the trade-offs
A larger down payment lowers both the payment and the total interest, but it ties up cash that the business may need for working capital. A longer term lowers the payment and raises the total interest: in the example, stretching from 36 to 84 months cuts the payment from $4,324.45 to $2,206.44 but adds $29,661 of interest. A balloon lowers the payment by pushing part of the cost to the end.
A good rule is to keep the term inside the equipment’s useful working life. Still paying for a machine after it has been replaced is the most expensive outcome of all.
Trucks, trailers and heavy equipment
Commercial vehicles and heavy equipment are among the most common things we see financed. For used units, the age, mileage or hours and condition affect the term available, and an older unit usually means a shorter term and a higher payment. Our guides to semi-truck financing, dump truck financing, tow truck financing and equipment financing for contractors cover each in more detail.
Taxes
Equipment that is financed rather than paid for in cash can often still be depreciated or expensed, and some businesses may be able to deduct the full purchase price in the year the equipment is put to use. Limits and rules change, so ask your accountant how a purchase would be treated before you sign. This calculator does not include tax effects.
What we look at
Equipment financing is secured by the equipment, so the quote or invoice comes first: what it is, new or used, and the seller. Beyond that we look at monthly revenue, time in business and how the business bank account is run, the same as for any other equipment financing request.
Common questions
How is an equipment financing payment calculated?
Take the price, subtract the down payment, and amortize the rest over the term at the monthly rate: payment = A × r ÷ (1 − (1 + r)−n). On $150,000 of equipment with 10% down at 9.5% over 60 months, that is $2,835.25 a month.
Is it better to lease or finance equipment?
Financing, or a $1 buyout lease, usually costs less if you plan to keep the equipment for most of its working life. A lease with a purchase option or a fair market value lease keeps payments lower and suits equipment you expect to replace. Compare the total cost, not just the monthly payment.
Do I need a down payment for equipment financing?
Not always, but many agreements ask for one, or for the first and last payments up front. A larger down payment lowers the monthly payment and the total interest. Set the down payment to zero in the calculator to see the difference.
Can I finance used equipment or a used truck?
Often, yes. Age, mileage or hours and condition affect the term, and older units usually come with shorter terms. Enter the price from the seller’s quote and try a shorter term to see the likely payment.
Read next: Equipment financing · How to choose equipment financing · Semi-truck financing · Trucking funding
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Have a quote for the equipment already? Checking what you qualify for takes about 60 seconds, uses a soft credit pull only, costs nothing to apply and carries no broker fees. Start an application or request a callback if you would rather talk it through.