Heavy Equipment Lease Calculator
Calculate finance payments for construction and agricultural machinery. Supports seasonal payment structures and Fair Market Value (FMV) vs. $1 Buyout options.
About
Financing "Yellow Iron" (excavators, dozers, cranes) requires flexibility that standard auto loans cannot offer. Revenue in construction and agriculture is often seasonal, necessitating payment structures that align with cash flow. This calculator allows contractors to model payments with seasonal skips (e.g., paying only interest or $0 during winter months).
It also compares the two primary lease structures: Fair Market Value (FMV), which offers lower monthly payments but no ownership equity, and $1 Buyout (Capital Lease), where the lessee owns the equipment effectively from day one. Credit tier adjustments reflect the reality of risk-based pricing in the heavy equipment sector.
Formulas
Standard amortization is calculated using the annuity formula, adjusted for residual value.
Where PV is the loan amount, FV is the residual value, i is the monthly interest rate, and n is the total months. Seasonal payments are calculated by solving for a weighted annuity factor.
Reference Data
| Credit Tier | Est. Rate Range | Down Pmt Req. | Approval Odds |
|---|---|---|---|
| A-Tier (720+) | 4.5% - 6.5% | 0% - 10% | Instant |
| B-Tier (660-719) | 6.5% - 9.0% | 10% - 20% | High |
| C-Tier (600-659) | 9.0% - 14.0% | 20% - 30% | Moderate |
| D-Tier (<600) | 15% + | 30% + | Low/Collateral Req. |