Equipment Finance Payment Calculator
This free calculator estimates the monthly payment on an equipment loan or lease. Enter the financed amount, the interest rate, the term in months, and any end-of-term residual or balloon, and it returns the monthly payment, the total of payments, and the total finance cost.
How the payment is calculated
The monthly payment amortizes the financed amount over the term at the periodic rate. If there is a residual or balloon (common in leases and some loans), the present value of that residual is subtracted from the financed amount before amortizing, which lowers the monthly payment but adds a final balloon to own the equipment. Set the residual to zero to model a straight equipment loan.
Equipment loan versus lease
An equipment loan finances the purchase and the borrower owns the asset, usually with no residual. A lease typically carries a residual, the assumed end-of-term value; payments amortize down to it, and the lessee can pay it to own or return the equipment. This calculator handles both.
For lenders and lessors
Pricing one deal is the easy part; servicing a book of them is the work. Zolvo automates reconciliation across varied lease and loan schedules, collections, and residual and portfolio monitoring, see equipment finance and the equipment finance servicing software guide.
Frequently asked questions
How is an equipment finance payment calculated?
The payment amortizes the financed amount over the term at the periodic rate; any residual or balloon has its present value subtracted from the financed amount first, lowering the payment and adding a final balloon to own the equipment.
What is the difference between an equipment loan and a lease?
A loan finances the purchase and the borrower owns the asset, often with no residual. A lease amortizes to a residual the lessee can pay to own or return. Set the residual to zero for a straight loan.
What APR should I use?
Use the all-in annual rate the lender quotes. Equipment finance pricing varies by credit, equipment type, and term, so treat the result as an estimate for comparison.
Does this include taxes and fees?
No. It estimates principal and interest only; sales or use tax, documentation fees, and insurance vary by deal and are not included.