By Lauren Ward | Updated March 13, 2026
Ready to upgrade a large piece of equipment or tech hardware for your business? Check out potential financing costs and repayment terms with SoFi’s equipment loan calculator. To compare different loan offers, you can adjust details such as pricing, down payment amounts, loan rates, and more.
Follow these steps to get the most accurate estimate from our equipment payment calculator.
Add up all the costs associated with your purchase, including price, taxes, and delivery fees. You can type in (or use the slider to select) any value between $5,000 and $500,000.
Include your anticipated down payment as a percentage of the total equipment cost. Again, you can type in the amount or use the slider to set it. If you don’t plan to make a down payment, simply input 0.
Type a loan’s estimated annual percentage rate (APR) into this box. With this information, the equipment finance calculator will be able to determine your payment amounts and the total interest paid over time.
Select the length of your loan term, from one to 10 years. If you’re unsure, consider the equipment’s useful lifespan and use that length of time as a starting point. Moving the slider makes it easy to see the result change. The equipment payment calculator shows that longer loan terms decrease monthly payment amounts but increase your total interest paid.
Many lenders charge an origination fee, usually some percentage of the loan amount. If you have that information, enter it here so that the equipment financing calculator can estimate the total cost.
After you enter a few details, the equipment finance calculator will provide you with the following information:
• Total amount financed: The amount of money (principal) you’ll be borrowing after you subtract your down payment from the equipment cost
• Origination fee: The dollar cost of this upfront fee, which is based on the amount you’re financing
• Estimated monthly payment: The amount you’ll send the lender every month to repay the principal and interest within the time frame of the loan
• Total interest paid: How much interest you’ll pay in total over the life of the loan
• Total cost of equipment: The full amount you’ll end up paying to buy your equipment, including price, fees, and interest
Equipment financing comes with some distinct advantages compared to other types of small business loans and leasing.
• Ownership of the equipment: Unlike with a lease, you own the equipment in full once the loan is completely repaid.
• Fixed monthly payments: Your loan will have predictable installments, enabling you to plan more decisively.
• Favorable loan terms: Because equipment financing uses the purchased item as collateral, this form of funding might give you better terms and rates than you’d find elsewhere.
• Potential tax advantages: Your business could potentially deduct interest payments and depreciation.
• Direct payment to retailer: With most equipment loans, the lender pays the retailer directly rather than depositing the money in your business checking account for you to pay out. This makes it easier to borrow the exact amount you need for the purchase.
Such loans are generally available for:
• Farm equipment such as tractors, combines, balers, and grain trailers
• Restaurant equipment, namely ovens, ranges, refrigerators, walk-in freezers, dining room furniture, etc.
• Commercial trucks including semis, dump trucks, delivery vans, and trailers
You can use the equipment finance calculator for a tractor loan, say, to help make sure the payments are affordable.
There are several reasons why businesses choose equipment loans to fund large purchases, whether they’re financing heavy equipment or office furnishings.
The first reason is to maintain your cash reserves. Maybe you want to keep funds on hand for other purposes, or you don’t have enough to cover the full purchase amount. Financing your equipment spreads out the cost of large purchases to preserve your working capital.
Another reason to use an equipment loan is to grow your business in a timely way. No matter what industry you’re in, investing in the right equipment and tech at the right time could help you scale more smoothly or become more efficient overall. You may need to upgrade existing equipment or bring in new assets for expansion.
Rather than borrowing the funds to purchase your equipment outright, you could lease the equipment. Each option has its pros and cons.
| Equipment loan | Equipment lease | |
| Ownership | Asset owned in full | Asset must be returned at end of term, unless capital lease allows for purchase |
| Down payment | Required | Not required |
| Well suited for… | Businesses planning to use the equipment for an extended period | Businesses that won’t need the equipment for its full life span or that want to upgrade to the latest model every few years |
Here’s a side by side comparison of the pros and cons of owning versus leasing your next equipment upgrade.
| Pros | Cons | |
| Owning |
• Can be cheaper over time • Earns equity in the equipment • No restrictions on eligible assets • Loan interest and depreciation may be tax-deductible |
• Usually requires down payment, increasing upfront costs • Owner fully responsible for maintenance and repair • Upgrading to newer equipment later could be difficult |
| Leasing |
• Allows for frequent upgrades • No down payment required • Payments may be tax-deductible • Leasing company may cover some maintenance costs |
• May be more expensive than financing over time • Business builds no equity in the equipment • Maintenance coverage may be limited |
Every lender has its own criteria for equipment loans. Here are some common requirements you’re likely to encounter:
• Time in business: One to two years minimum
• Annual revenue: At least $100,000
• Business and personal credit scores: Varies by lender
Because the equipment itself can be used as collateral to secure the loan, you may find lenders willing to be more flexible. If your business is on the newer side and has issues qualifying for equipment financing, consider applying for a startup business loan.
Recommended: Business Line of Credit
After getting some cost estimates from our equipment financing calculator, you may feel ready to apply for a loan. Having payment and interest details at hand could give you the confidence to take the next step.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
Interest rates for equipment loans can vary significantly based on the lender and your business financials. It’s best to get quotes from multiple lenders in order to nail down a competitive rate.
Yes, many lenders allow you to finance used equipment but your loan terms may be less favorable than for a new purchase. For instance, a lender may impose a shorter repayment term and higher interest rates to account for the age of the equipment.
It depends on the type of equipment. Typically the time frame is one to 10 years, but equipment that’s expected to have a shorter lifespan may be subject to a shorter repayment period as well. Experiment with our equipment loan calculator to see the impact of different loan terms on the size of your monthly payment.
Some lenders do require a down payment for an equipment loan. But you may be able to avoid it if the loan has a shorter repayment term.
Paying off your equipment loan early can help you save on future interest. But before you make your move, check your loan agreement, because some lenders may charge a prepayment penalty that would reduce your overall savings.
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Keep your business moving. Look for a provider and see your equipment financing options today.
