What rates are common for manufacturing equipment?

Strong borrowers may see 7–11% APR on loans; lease factor rates around 0.022–0.030 depending on term, equipment age, and collateral strength.

How long can I finance?

Heavier manufacturing assets can qualify for 60–84 month loans and 36–60 month leases.

Can I finance used CNC machines?

Yes. Lenders often require inspections and may adjust terms based on age and hours.

Manufacturing Equipment Financing Calculators

Model loans, leases, lease vs buy, and ROI for CNC machines, production lines, packaging systems, and more.

Equipment Loan Calculator

Calculate monthly payments, total interest, and see your complete amortization schedule.

Equipment Cost

Equipment Type

Down Payment$40,000 (20.0%)

Interest Rate9.00%

Loan Term84 months (7.0 years)

Loan Summary

Loan Amount

$160,000

Down Payment

$40,000 (20.0%)

Loan Results

Enter equipment details to see loan calculations

Equipment Lease Calculator

Calculate lease payments using factor rates, residual values, and end-of-lease options.

Equipment Cost

Equipment Type

Factor Rate2.700% (5.4% APR equiv.)

Factor rate is the lease cost per dollar of equipment value. Lower is better.

Typical range: 0.015-0.040. Enter as a decimal (e.g., 2.5% = 0.025). Rates above 0.040 are considered high-risk pricing.

Lease Term60 months (5.0 years)

Residual Value$50,000 (25.0%)

Estimated equipment value at lease end. Higher residual = lower payments.

Lease Summary

Equipment Cost

$200,000

Residual Value

$50,000 (25.0%)

Factor Rate

2.700%

Lease Term

60 months

Lease Results

Enter equipment details to see lease calculations

Lease vs Buy Calculator

Lease vs Buy Comparison

Compare equipment financing options side-by-side to make the best decision.

Equipment Cost

Equipment Type

Loan Options

Down Payment$40,000 (20.0%)

Interest Rate9.00%

Loan Term84 mo (7.0 yr)

Lease Options

Factor Rate2.700%

Lease Term60 mo (5.0 yr)

Residual Value$50,000 (25.0%)

Quick Summary

Equipment: $200,000

Loan Amount: $160,000

Residual: $50,000 (25.0%)

Enter equipment details to compare financing options

Equipment ROI Calculator

Calculate return on investment, payback period, and revenue projections for equipment purchases.

Equipment Cost

Equipment Type

Monthly Revenue Generated

Monthly Operating Expenses

Analysis Period72 months (6.0 years)

Profit Summary

Monthly Profit

$20,000

Annual Profit

$240,000

• Revenue: Income generated by using this equipment

• Expenses: Operational costs (maintenance, fuel, labor, etc.)

• Analysis shows equipment's financial performance over time

ROI Analysis

Enter equipment details to see ROI analysis

Manufacturing Financing Tips

Package installation and tooling costs into financing where possible.
Consider productivity gains in ROI modeling, not just revenue.
Explore Section 179 and bonus depreciation benefits with your CPA.

Explore other industries: Construction · Medical · Restaurant

Manufacturing Equipment Financing: Complete Guide

Manufacturing assets often qualify for longer loan terms due to durable collateral and strong productivity gains. Use the calculators above to compare cost of ownership versus leasing flexibility.

Key Considerations

Installation, tooling, and training timelines
Throughput increases and quality improvements
Preventive maintenance and uptime targets

Best Practices

Align term with asset life and production forecasts
Benchmark ROI on productivity, not just top-line revenue
Use lease options for rapidly evolving peripherals

Selling or buying a shop? Use the machine shop valuation calculator and valuation multiples guide. ROI method: how to calculate equipment ROI.