Equipment Finance Payment Calculator
Estimate the monthly payment on an equipment loan or lease. Enter the financed amount, rate, term, and any end-of-term residual or balloon.
Equipment loans and leases
Equipment finance covers loans, where the borrower owns the asset, and leases, which amortize to an end-of-term residual the lessee can pay to own or return. The monthly payment depends on the financed amount, the rate, the term, and that residual. Set the residual to zero to model a straight equipment loan.
Servicing also involves matching payments and following up on late balances. See equipment finance for Zolvo for your lending team and the equipment finance servicing software guide for further reading.
Frequently asked questions
How is an equipment finance payment calculated?
The monthly payment amortizes the financed amount over the term at the periodic interest rate. If there is a residual or balloon at the end (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.
What is the difference between an equipment loan and a lease?
An equipment loan finances the purchase and the borrower owns the asset, often with no residual. A lease typically carries a residual (the assumed end-of-term value); payments amortize down to that residual, and the lessee can pay it to own the equipment or return it. This calculator handles both: set the residual to zero for a straight loan.
What annual interest rate should I use?
Use the annual interest rate for the payment calculation. This tool does not add fees or calculate an all-in APR. Confirm the rate, fees and end-of-term options in the lender’s offer.
Does this include taxes and fees?
No. This estimates principal and interest only. Sales or use tax, documentation fees, and insurance are not included and vary by deal and jurisdiction, so the true cost of an equipment finance agreement is usually somewhat higher than the figure shown.
Talk to the team.
Book a call