How do you calculate a monthly equipment loan payment?
The payment uses the standard amortization formula: M = P x r / (1 - (1 + r)^-n), where P is the amount financed (price minus down payment), r is the monthly rate (APR / 12), and n is the number of months. This calculator does that and also shows total interest over the term.
What APR should I expect on restaurant equipment financing?
It varies with your credit, time in business, and the lender. Equipment finance companies and dealer programs commonly land anywhere from the high single digits to the high teens; strong borrowers and SBA-backed loans trend lower, newer businesses higher. Get quotes from several sources and compare the APR, not just the monthly payment.
Is a down payment required to finance equipment?
Not always. Many equipment finance agreements offer low or $0 down (the equipment itself is the collateral), while banks and SBA loans often want 10-20% down. A larger down payment lowers your monthly payment and total interest but ties up cash you may need for working capital.
Does this include taxes, fees, or freight?
No. It's a planning estimate of principal and interest only. Sales tax, documentation fees, and freight can be rolled into the financed amount or paid separately — add them to the price if you want them included. Confirm the true cost with your lender's quote.