Equipment Financing Calculator

Why a Calculator Beats Guesswork

If you’re planning a truck purchase, upgrading shop machinery, or adding restaurant equipment, the fastest way to move from idea to action is to run the numbers. An equipment financing calculator turns sticker price into practical answers: What will this cost each month? How much down payment makes sense? Lease or loan?

Use Mehmi’s online financing calculator to model real-world scenarios in minutes, then apply through our equipment financing programs when you’re ready.

What an Equipment Financing Calculator Actually Does

A good calculator converts inputs into a monthly payment and a total cost estimate. The most useful ones let you adjust:

• Equipment cost (purchase price or invoice)
• Down payment / trade value
• Term length (e.g., 24–84 months)
• Rate (APR for loans; implicit rate or money factor for leases)
• Residual / buyout (for leases or conditional sale)
• Taxes and fees (provincial sales tax, titling, admin where applicable)

Outputs you should expect:

• Estimated monthly payment
• Total of payments over the term
• Estimated interest/financing charges
• Effect of down payment and residual on cash flow

Model it first with the calculator, then choose the right route: equipment loans, equipment leases, an equipment line of credit for ongoing purchases, or refinancing & sale-leaseback to unlock equity in assets you already own.

Step-by-Step: How to Use Mehmi’s Calculator

1. Set the equipment price. Enter the full purchase price (new or used).
2. Pick a term. Choose a duration that balances cash flow and total cost.
3. Enter a realistic rate. If you’re unsure, test a range; we’ll quote your actual approval.
4. Add down payment or residual. Bigger down payment lowers monthly cost; a residual lowers payments on leases.
5. Include taxes. Model with your province’s sales tax.
6. Compare scenarios. Save 2–3 versions (e.g., 48 vs 60 months; lease vs loan).

Tip: If your needs are project-based or seasonal, model a line of credit scenario for flexibility and draw only what you need: Equipment Line of Credit.

Lease vs Loan: How the Math Differs

Leases and loans can produce similar monthly payments, but the math (and ownership path) is different. Use the calculator to see the trade-offs, then choose the structure that matches your goals.

Ownership vs. Use

• Loan: You finance ownership from day one; you build equity and depreciate the asset.
• Lease: You pay for use; end with a buyout (e.g., $10, 10%, or FMV), or return/upgrade.

Cash Flow Levers

• Loan: Down payment and term are your main levers.
• Lease: Term and residual/buyout significantly reduce monthly cost.

Quick Comparison (illustrative only)

Explore structures here:

• Equipment Loans
• Equipment Leases

The Variables That Move Your Monthly Payment

• Credit & time in business: Startups and credit challenges may see higher rates or require stronger down payments; ask about in-house financing options.
• Asset type & age: New equipment may qualify for longer terms and better pricing; used is often fine with adjusted terms.
• Term length: Longer terms reduce monthly cost but increase total interest.
• Down payment / residual: Bigger down or higher residual reduces the monthly; the right balance depends on tax and upgrade plans.
• Industry risk: Transport, construction, hospitality each have unique risk profiles and program nuances. See Transportation & Trucking, Construction & Contractors, and Hospitality & Food Service.
• Province & tax: Sales tax impacts cash flow — include it in your calculator scenarios.
• Fees: Admin and titling fees are modest but should be modeled for accuracy.

Three Payment-Lowering Strategies You Can Test Today

1. Shift terms, not goals. Model 48 vs 60 vs 72 months; track monthly savings and total cost.
2. Introduce a buyout. A 10% lease residual can materially lower payments while keeping an ownership path.
3. Blend financing tools. Use a sale-leaseback on owned assets to inject cash, then finance the new purchase separately.

For ongoing acquisition needs across the year, consider an Equipment Line of Credit to draw per project and keep monthly obligations lean.

Case Study: From “Can We Afford It?” to “When Can We Start?”

Business: Ontario paving contractor
Need: A used paver and two compactors to win a municipal tender
Challenge: Preserve cash for payroll and materials while upgrading fleet
Approach:

• Modeled three scenarios with the calculator: loan (60 months), lease with 10% residual (60 months), and line of credit plus lease.
• Selected lease with 10% residual to lower monthly payments ~14% vs the loan scenario.
• Used a small down payment and rolled taxes/fees to conserve working capital.
  Outcome: Won the tender, added two crews, and refinanced the residual at term end using business refinancing once revenue stabilized.

Sector-Specific Tips for Better Estimates

• Trucking & logistics: If you’re considering tractors, day cabs, straight trucks, or trailers, browse heavy-duty truck expertise and trailer financing to align payment expectations with asset class and mileage.
• Construction: Earthmoving and lifting gear often qualifies for terms that match expected useful life; see construction equipment expertise.
• Manufacturing & warehousing: Consider a blend of loans for long-life machines and asset-based lending for inventory and receivables to round out working capital.
• Restaurants: If you’re upgrading ovens, chillers, or POS, ask about rent-to-own for hospitality to keep upfront costs minimal.

When you’re close to choosing equipment, confirm it’s on our Eligible Equipment list.

Common Calculator Mistakes (and Easy Fixes)

• Ignoring taxes or fees: Always toggle taxes on; include admin/registration for a clean picture.
• Assuming bank-only rates: Boutique financing is often faster and more flexible for SMEs and startups; use a realistic range and let us quote your actual approval.
• Choosing term by habit: Re-model at adjacent terms; the right choice balances monthly affordability and total cost.
• Forgetting residuals: If you plan to upgrade, model a residual/buyout; it reduces monthly cash outlay.
• Not revisiting scenarios: After you pick a specific unit from Inventory or a vendor, re-run numbers with the exact price and taxes.

From Estimate to Approval: Your Next Steps

1. Run scenarios in the calculator (loan, lease, residual).
2. Pick a structure aligned to ownership plans: loans vs leases.
3. Gather invoice & basics (business details, time in business, bank statements where applicable).
4. Apply via Contact Us for a tailored quote and terms.
5. Close quickly and schedule delivery/installation.

If you already own equipment and need liquidity, consider refinancing & sale-leaseback to bolster cash flow now.

FAQ: Equipment Financing Calculator (Canada)

How accurate are calculator results?
They’re estimates. Your approved rate and term depend on credit, asset, and financials. We’ll firm up numbers when you contact us with a specific unit.

Should I model a lease or a loan?
If you’ll keep the asset long-term, model a loan; if you value lower payments and upgrade flexibility, model a lease with a buyout. Compare both in the calculator.

Can I include used equipment?
Yes. Many assets qualify (subject to age/condition). Check Eligible Equipment.

What about start-ups?
Start-ups can often qualify with the right structure (down payment, collateral, co-signer). Explore in-house financing and model conservative terms.

Do I add taxes to the price or finance them?
You can model either approach. For cash-flow relief, many clients finance taxes; your calculator scenarios should test both.

What if I need ongoing purchases all year?
Model an equipment line of credit for repeat buys; you’ll only pay interest on what you draw.

Ready to See Your Payment?

Run your numbers with the Equipment Financing Calculator, compare Loans vs Leases, and when you’re happy with a scenario, contact our advisors for a firm quote.

Are you looking for a truck? Look at our used inventory.
Learn more about who we are on About Us and explore all Industries we support.

‍