Free Tool
Equipment Financing & Section 179 Calculator
Finance equipment and deduct its full cost the same year. Enter the equipment cost, rate, term, and your tax rate to see your monthly payment, your first-year Section 179 deduction, your estimated tax savings, and your real net cost.
How Section 179 + financing works together
Section 179 of the tax code lets a business deduct the full purchase price of qualifying equipment in the year it's placed in service — up to the annual limit — even if you financed it and only made a few payments. That's the lever:
- Finance the equipment → small monthly payment, cash stays in the business.
- Deduct the full cost now → a large first-year deduction.
- Result: the first-year tax savings often exceed your first-year payments — the deduction helps the equipment pay for itself.
For the rules, limits, and qualifying equipment, see our Section 179 equipment deduction guide and how equipment financing works.
This calculator provides estimates for educational purposes only and is not tax, legal, or financial advice. Section 179 limits, phase-outs, and bonus depreciation change annually and depend on your situation. Confirm the current year's limits and your eligibility with a qualified tax professional.
Equipment financing & Section 179 questions
Does financed equipment qualify for Section 179?
Yes — equipment you finance qualifies in the year it's placed in service, just like a cash purchase. That's what makes financing + Section 179 powerful.
How much can I deduct?
Up to the annual Section 179 limit ($1,250,000 for 2025, phase-out near $3.13M). Most SMB purchases qualify in full. Confirm the current limit with a tax pro.
What's my monthly payment?
Depends on cost, rate, and term — e.g., $100,000 over 60 months at 9% is about $2,076/month. Use the calculator for your numbers.
Is the tax savings guaranteed?
No — it's an estimate based on your inputs. Actual savings depend on your taxable income, entity type, and current law. Talk to your accountant.