Estimate the monthly payment on a restaurant equipment loan in 30 seconds. Default scenario: $50,000 at 8.5% APR over 60 months with 10% down = roughly $923/month for 5 years on a $45,000 financed amount. Adjust the inputs to match your equipment cost, the rate you've been quoted, and how long you want to spread the payment.
Takes 60 seconds. No impact to your credit score.
Check Funding EligibilityIt uses the standard amortization formula: M = P · [r(1+r)^n] / [(1+r)^n − 1], where P is the financed amount (cost minus down payment), r is the monthly rate (APR/12), and n is the number of months. The result is your fixed monthly payment for the entire term, assuming no extra payments and no rate change.
The monthly payment is what most operators focus on, but two other numbers matter more: total interest paid and total cost. A $50K loan at 8.5% over 60mo has a monthly of $1,025 and total interest of $11,500. The same loan stretched to 84 months drops the monthly to $785 but raises total interest to $15,940. Longer terms feel cheaper but cost real money.
Rate depends on three things: personal credit (580+ gets 14–20%, 680+ gets 8–14%, 750+ gets 5.99–10%), time in business (1+ year is the threshold for best rates), and equipment type (long-life equipment like walk-ins and hoods gets better rates than short-life equipment like POS systems). Get quotes from 2–3 lenders before signing — rate spreads of 4–6% across lenders for the same applicant are normal.
If you finance $50K of restaurant equipment in 2026, you can deduct the full $50K under Section 179 in year 1 (assuming you're under the $1.16M cap). At a 24% effective tax rate, that's $12,000 in tax savings — meaning your net cost in year 1 is closer to $38K, not $50K. Use the Section 179 calculator to see your specific savings.
Close, but not exact. Lenders add origination fees (1%–3% of the loan), documentation fees ($150–$500), and sometimes UCC filing fees ($50–$150). Build a 2–4% buffer into the calculator output to estimate true total cost.
Most equipment loans allow early payoff but some (especially EFAs and structured leases) carry a prepayment penalty in months 1–24. Ask the lender directly — never assume. If the contract says 'simple interest' and 'no prepayment penalty', you can pay off any time and only pay interest accrued through that day.
Equipment loans with balloons are less common in restaurant — they're more typical of trucking and construction. If a lender offers a 'low monthly with $X,XXX due at month 60', the monthly looks great but the residual is a refinance event you have to plan for.
Loan = own the equipment day 1, full Section 179 deduction. Lease = rent, monthly often lower, payments deducted as operating expense. Use the lease vs loan calculator to compare 5-year total cost-of-ownership directly.
Most operators see funding decisions within 24-48 hours.
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