Amount financed
The equipment price minus your down payment. Interest is charged on this balance.
A larger down payment reduces both the payment and the interest.
EQUIPMENT FINANCING CALCULATOR
Plan your payments. Own your equipment.
Estimate the monthly payment, total interest, and true APR of financing POS hardware, card terminals, or other business equipment, with a year-by-year payoff schedule.
PAYMENTS IN MOTIONPlan your payments. Own your equipment.
RUN THE NUMBERS
Enter your financing terms.
Add the equipment price, any down payment, the interest rate and origination fee from the offer, and choose a repayment term. Results update instantly.
THE SHORT ANSWER
How is an equipment loan payment calculated?
An equipment loan payment is calculated with the standard amortization formula: the amount financed, the monthly interest rate, and the number of payments determine a level monthly payment. Early payments are mostly interest and later payments mostly principal. Upfront fees raise the true cost, which is why the APR including fees can be higher than the quoted rate.
THE FORMULA
Payment = P × r ÷ (1 − (1 + r)^−n)
P is the amount financed, r is the monthly rate (APR ÷ 12), and n is the number of months. Financing $10,000 at 12% APR over 36 months gives a payment of about $332.14 and roughly $1,957 in total interest.
KEY TERMS, EXPLAINED
The language of equipment financing.
APR
The annual percentage rate charged on the balance. Lenders set it based on credit, term, and equipment.
Compare APRs from several lenders on the same term.
APR including fees
The effective annual rate once origination and documentation fees are counted.
Use this, not the headline rate, to compare offers.
Origination fee
A one-time fee for setting up the loan, usually a percentage of the amount financed.
Ask whether it is paid upfront or added to the loan.
Term
How long you have to repay. Longer terms lower the payment but increase total interest.
Match the term to the useful life of the equipment.
Amortization
How each payment splits between interest and principal over time.
Early payments reduce the balance slowly.
Prepayment penalty
A fee some lenders charge if you pay the loan off early.
Ask whether early payoff is allowed without a penalty.
Collateral and UCC filing
The equipment usually secures the loan, and the lender may file a lien until it is repaid.
Understand what happens if payments are missed.
Personal guarantee
Some lenders require an owner to guarantee the loan personally.
Read guarantee terms carefully before signing.
SIDE BY SIDE
Financing compared with leasing and buying.
| Financing | Leasing | Buying outright | |
|---|---|---|---|
| Ownership | Yes, once repaid | Depends on buyout | Immediate |
| Upfront cost | Down payment and fees | Advance payments and fees | Full price |
| Total cost | Price plus interest and fees | Often the highest | Lowest |
| Early exit | Pay off the balance | Often not allowed | Sell or keep |
| Best for | Long-term use while preserving cash | Lowest monthly payment | Businesses with cash available |
STEP BY STEP
How to compare financing offers.
- 01
Collect written offers
Ask each lender for the APR, fees, term, and total repayment in writing.
- 02
Use the same term
Compare offers on the same number of months so payments line up.
- 03
Count every fee
Enter origination and documentation fees to see the APR including fees.
- 04
Check early payoff
Confirm there is no prepayment penalty if you plan to pay early.
- 05
Compare with leasing
Run the same equipment through the lease calculator before deciding.
FREQUENTLY ASKED
Questions businesses ask.
What credit score do I need for equipment financing?
Requirements vary by lender. Many review business and personal credit, time in business, and revenue. Ask each lender what they require before applying.
Is equipment financing better than leasing?
Financing usually costs less in total and leads to ownership, while leasing can offer lower payments. Compare both with the lease and financing calculators.
Can I finance POS equipment with no money down?
Some lenders offer zero-down financing, which raises the amount financed and the total interest. Enter a $0 down payment to see the effect.
Does Waytrix Pay provide equipment loans?
No. Waytrix Pay can discuss referral options. Financing is provided by third-party lenders who set eligibility, rates, and terms.
Is equipment financing tax deductible?
Interest and depreciation can have tax implications. Ask your tax advisor how they apply to your business.