Equipment and Service Truck Loan Calculator
Work out the monthly payment, total interest and payoff date for a service truck, equipment or business loan. Add a down payment, fees, extra payments or a balloon, view the schedule and compare two offers side by side.
Compare two offers
Offer A is the loan entered above. The comparison ignores extra payments so both offers are measured the same way. Example Offer B values shown.
| Offer A | Offer B | |
|---|---|---|
| Amount financed | $20,000.00 | $20,000.00 |
| Monthly payment | $386.66 | $317.48 |
| Number of payments | 60 | 72 |
| Balloon at the end | $0.00 | $0.00 |
| Total of payments | $23,199.35 | $22,858.63 |
| Total interest | $3,199.35 | $2,858.63 |
Monthly payment: Offer B has the lower payment by $69.18.
Total interest: Offer B has the lower interest by $340.72.
Total of payments: Offer B has the lower total cost by $340.72.
Compared without extra payments. A lower payment on a longer term often costs more in total interest.
Principal vs interest by year
■ Principal ■ Interest
Amortization schedule
| Payment | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $286.66 | $100.00 | $19,713.34 |
| 2 | $288.09 | $98.57 | $19,425.25 |
| 3 | $289.53 | $97.13 | $19,135.72 |
| 4 | $290.98 | $95.68 | $18,844.74 |
| 5 | $292.44 | $94.22 | $18,552.30 |
| 6 | $293.90 | $92.76 | $18,258.40 |
| 7 | $295.37 | $91.29 | $17,963.03 |
| 8 | $296.84 | $89.82 | $17,666.19 |
| 9 | $298.33 | $88.33 | $17,367.86 |
| 10 | $299.82 | $86.84 | $17,068.04 |
| 11 | $301.32 | $85.34 | $16,766.72 |
| 12 | $302.83 | $83.83 | $16,463.89 |
Showing the first 12 of 60 payments.
Yearly summary
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| 1 | $3,536.11 | $1,103.81 | $16,463.89 |
| 2 | $3,754.20 | $885.72 | $12,709.69 |
| 3 | $3,985.76 | $654.16 | $8,723.93 |
| 4 | $4,231.59 | $408.33 | $4,492.34 |
| 5 | $4,492.34 | $147.33 | $0.00 |
How to use this tool
- Enter the loanType the price, any down payment, the APR and the term. Add fees, extra payments or a balloon if you have them.
- Read the payment and the costSee the monthly payment, total interest and payoff date, and how extra payments change them.
- Compare offersTick the comparison box to put a second offer next to the first and see the difference in payment and total interest.
How we calculate it
M = P × r ÷ (1 − (1 + r)−n)
- M is the monthly payment, P the amount financed (price − down payment + financed fees)
- r is the monthly rate: APR ÷ 12 (for example 6% gives 0.5%, or 0.005)
- n is the number of monthly payments
- At 0% APR the formula would divide by zero, so the payment is simply P ÷ n
- With a balloon B: M = (P − B × (1 + r)−n) × r ÷ (1 − (1 + r)−n)
Each month the interest is the balance times r; the rest of the payment reduces the balance. Payments and interest are rounded to the cent every month and the last payment settles any leftover cents. The rate is treated as a nominal annual rate compounded monthly. Real loans can differ in fees, day-count methods and payment timing, so use this as a planning tool and rely on your lender's documents for exact figures. This is not financial advice.
Worked examples
1. A $20,000 loan at 6%
Over 60 months the payment is $386.66. The first month's interest is $20,000 × 0.5% = $100.00, so only $286.66 reduces the balance. You repay $20,000 of principal plus $3,199.35 of interest, $23,199.35 in all. Over 36 months the payment is $608.44 and interest $1,903.82; over 84 months it is $292.17 and interest $4,542.37. Each stretch lowers the payment and raises the total cost.
2. A 0% financing offer
A $12,000 purchase at 0% over 24 months is simply $12,000 ÷ 24 = $500.00 a month with $0.00 of interest. Check the fine print: a 0% offer can replace a cash discount, so the discount you give up is the real cost of financing.
3. Extra payments
Adding $100 to each payment on the first loan ends it in 47 months instead of 60, 1 year 1 month sooner, and saves about $754.99 in interest.
4. A balloon payment
Financing $30,000 at 5% over 36 months costs $899.13 a month. With a $10,000 balloon due at the end the payment falls to $641.08, but you owe $10,000.17 with the last payment and total interest rises from $2,368.58 to $3,079.05, because that principal stays outstanding for three years.
Common mistakes and pitfalls
- Choosing by monthly payment alone. A longer term lowers the payment and raises the total interest. Compare the total of payments.
- Ignoring fees. Origination, documentation and other fees raise the real cost. Add them in the financed fees field, or compare using the lender's APR disclosure.
- Confusing the interest rate with the APR. They can differ when fees are included. Ask the lender which one is quoted.
- Forgetting the balloon. A low payment can hide a large lump sum. Plan how you will pay or refinance it.
- Prepayment penalties. Some loans charge for paying early, and some require extra payments to be marked as principal.
- Financing something that wears out faster than the loan. Equipment that is worn out before the final payment leaves you paying for something you no longer use.
- Assuming the first payment date. Interest starts accruing at funding, and the first payment may be more or less than a month later, which can change the real interest by a little.