Equipment loan and lease payment calculator
Enter the equipment price, your down payment, the term, the rate on your quote and any residual or buyout. You get the monthly payment and what the equipment costs in total. It is an estimate for planning, not an offer.
Start an applicationYour numbers
| Equipment price ($) | Before taxes. Include delivery or installation if they are part of the financing. |
|---|---|
| Down payment ($) | Leave 0 to finance the full price. |
| Term (months) | The number of monthly payments. |
| Annual interest rate (%) | Type the rate on your quote. The calculator suggests no rate of its own. |
| Residual or buyout at the end ($) | A lease buyout or a final balloon payment. Use 0 for a loan paid off in full, or 1 for a $1 buyout. |
When payments are collected
- First payment one month after signing. Each payment at the end of its month.
- First payment at signing. Each payment at the start of its month.
- First and last payments at signing. Two payments up front, none in the final month.
How the payment is calculated
The calculator uses the standard amortization formula for equipment loans and leases. The annual rate you type is divided by 12 to get a monthly rate. The residual is brought back to today's dollars, the rest of the amount financed is spread evenly over the payments, and each payment covers that month's interest first and principal after.
With payments collected at the end of each month, the formula is:
Payment = (amount financed − residual ÷ (1 + i)ⁿ) × i ÷ (1 − (1 + i)⁻ⁿ), where i is the annual rate ÷ 12 and n is the number of payments.
Worked example
A $100,000 machine, no down payment, 60 monthly payments, a $10,000 buyout at the end, payments at the end of each month, and a rate of 8% typed in to show the math.
8% is only an illustration. It is not a Voxen rate; use the rate on your own quote.
- Monthly rate — 8% ÷ 12 = 0.6667% (i = 0.006667).
- Growth over 60 months — (1 + i)^60 = 1.4898.
- Residual in today's dollars — $10,000.00 ÷ 1.4898 = $6,712.10.
- Amount to spread over the payments — $100,000.00 − $6,712.10 = $93,287.90.
- Monthly payment — $93,287.90 × i ÷ (1 − 1 ÷ 1.4898) = $1,891.54 per month.
- Total cost — 60 payments of $1,891.54 = $113,492.53, plus the $10,000.00 buyout = $123,492.53, of which $23,492.53 is interest.
- Same numbers, different payment timing — First payment at signing: $1,879.02 a month. First and last payments at signing: $1,866.82 a month, with $3,733.64 paid at signing.
Why the timing of payments changes the amount
When each payment is collected at the start of its month instead of the end, the payment is the end-of-month result divided by (1 + i): the money arrives a month sooner, so a little less interest builds up.
Many leases collect the first and last payments at signing. The last payment then counts as paid on day one, which lowers the monthly payment a little more, but you hand over two payments up front.
What the estimate leaves out
Estimate for planning only. It uses only the numbers you enter. Taxes, fees and insurance are not included. It is not a quote or an offer from Voxen Capital: a real offer depends on the lender, the equipment and your business.
- Sales taxes. Depending on the province and on whether you lease or buy, GST, HST, PST or QST may apply.
- Documentation or registration fees, insurance, and any security deposit.
- Changes in rate. The calculator assumes one fixed rate for the whole term.
Get an offer on this equipment
Send the vendor quote and Voxen structures the financing: loan, lease or lease-to-own. Most files receive a structured offer within 24 hours.
Frequently asked questions
How do I calculate an equipment loan or lease payment?
Divide the annual rate by 12 to get the monthly rate i. Subtract the residual, brought back to today's dollars, from the amount financed. Multiply by i and divide by 1 − (1 + i) to the power of minus the number of payments. That is the payment when each one is due at the end of its month; divide by (1 + i) when payments are due at the start.
What is a residual or buyout?
It is the amount left to pay at the end of the term. On a lease it is the buyout price, often fair market value or a set amount such as $1 on a lease-to-own. On a loan it is a balloon payment. A residual lowers the monthly payment, but you still pay it at the end and you pay interest on it for the whole term.
Why are two payments due at signing on some leases?
Some leases collect the first and the last payment when the lease is signed. Nothing is due in the final month, and the monthly payment comes out slightly lower than with one payment up front, because the lender has more of its money back on day one.
Which rate should I enter?
The rate on the quote you received from a dealer or a lender. The calculator does not suggest a rate. Equipment financing rates depend on the type of equipment, its age, the vendor, time in business and credit profile, so two quotes on the same machine can differ.
Does the result include taxes and fees?
No. The estimate covers the amount financed, interest and the residual. Sales taxes, documentation fees, insurance and any deposit come on top, and the lender's offer is the number to rely on.
Related
- Equipment financing in Canada — Heavy equipment, trucks and trailers, CNC machines, terms and requirements.
- Equipment financing vs leasing — Ownership, tax treatment and when each one fits.
- How to qualify for equipment financing — What lenders look at and the documents to prepare.
- Equipment refinancing in Canada — Turning equipment you already own into working capital.